Mitch Fifield (Victoria, Liberal Party, Minister for Communications and the Arts) Share this | Link to this | Hansard source

I move:

That this bill be now read a first time.

Question agreed to.

Bill read a first time.

Scott Ryan (President) Share this | Link to this | Hansard source

The question now is that the amendment on sheet 8665, circulated by Pauline Hanson's One Nation, be agreed to:

Pauline Hanson's One Nation circulated amendment—

(1) Page 32 (after line 4), at the end of the Bill, add:

Schedule 3—Taxation transparency reporting

Offshore Petroleum and Greenhouse Gas Storage Act 2006

1 After subsection 136(22)

  Insert:

Reporting

  (23) A petroleum retention lease is subject to a condition that the lessee must give the Commissioner of Taxation a taxation transparency report within:

  (a) 30 days after the day on which the lease is granted; and

  (b) in relation to each year of the term of the lease, 30 days after the day on which the year of the term ends.

  (24) In this section taxation transparency report means a report that includes the following information:

  (a) an estimate of the quantity of recoverable petroleum in all petroleum pools situated in the lease area;

  (b) an estimate of the value of the recoverable petroleum mentioned in paragraph (a);

(c) the data upon which the estimates in paragraphs (a) and (b) are based; and

  (d) all payments to the Commonwealth, a State or a Territory related to liabilities arising from the petroleum retention lease, including:

     (i) relevant lease fees;

     (ii) royalties; and

     (iii) any tax (however described) payable under a law of the Commonwealth or of a State or Territory.

  (25) The Commissioner of Taxation must, as soon as practicable after receipt, make publicly available each taxation transparency report.

2 After subsection 162(21)

  Insert:

Reporting

  (22) A petroleum production licence is subject to a condition that the licence holder must give the Commissioner of Taxation a taxation transparency report within:

  (a) 30 days after the day on which the licence is granted; and

  (b) in relation to each year of the term of the licence, 30 days after the day on which the year of the term ends.

  (23) In this section taxation transparency report means a report that includes the following information:

(a) an estimate of the quantity of recoverable petroleum in all petroleum pools situated in the licence area;

(b) an estimate of the value of the recoverable petroleum mentioned in paragraph (a);

(c) the data upon which the estimates in paragraphs (a) and (b) are based; and

(d) all payments to the Commonwealth, a State or a Territory related to liabilities arising from the petroleum production licence, including:

     (i) relevant licence fees;

     (ii) royalties; and

     (iii) any tax (however described) payable under a law of the Commonwealth or of a State or Territory.

  (24) The Commissioner of Taxation must, as soon as practicable after receipt, make publicly available each taxation transparency report.

3 Subsection 470 ( 2 ) (after table item 2)

  Insert:

Duncan Spender (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

Mr President, are there any One Nation senators to move that?

Scott Ryan (President) Share this | Link to this | Hansard source

I just asked the Clerk whether someone needed to be present to move it and I was told that is not the case because we're operating under the guillotine. If amendments have been circulated, they're deemed to have been moved, I've been informed. The question is that the amendment be agreed to.

Question negatived.

The question now is that item 14 of schedule 1 and schedule 2 stand as printed.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Point of order: that's 323, 996,781,000—

Scott Ryan (President) Share this | Link to this | Hansard source

You know full well that that is an inappropriate use of a prop. These are Australian Greens amendments (1) on sheet 8669 and (1) on sheet 8664.

The Greens opposed schedule 1 and schedule 2 in the following terms—

(1) Schedule 1, item 14, page 5 (lines 23 to 24), to be opposed.

(1) Schedule 2, page 18 (line 1) to page 32 (line 4), to be opposed.

Question agreed to.

The question now is that the remaining amendments on sheets 8669 and 8664 and the amendments on sheets 8662 and 8663, circulated by the Australian Greens, be agreed to.

The Greens' circulated amendments—

(2) Schedule 1, page 6 (before line 13), before item 21, insert:

20D Subparagraphs 35D ( 3 ) (a)(iii) and (v) and ( 4 ) (a)(iii) and (v)

Omit "class 2 augmented bond rate", substitute "class 2 uplifted".

(3) Page 32 (after line 4), at the end of the Bill, add:

Schedule 5—Order of deductible expenditures

Petroleum Resource Rent Tax Assessment Act 1987

1 Subsection 33 ( 3 )

Omit "where the class 1 augmented bond rate general expenditure", substitute "if the sum of the class 2 uplifted exploration expenditure and the class 1 augmented bond rate general expenditure".

2 Subsection 34 ( 3 )

Repeal the subsection, substitute:

(3) For the purposes of subsection (1) or (2), if the sum of:

(a) the class 2 uplifted exploration expenditure; and

(b) the class 1 augmented bond rate general expenditure; and

(c) the class 1 augmented bond rate exploration expenditure;

incurred by a person in a financial year in relation to a petroleum project exceeds the assessable receipts derived by the person in the financial year in relation to the project, an amount ascertained in accordance with the formula , where:

A is so much of the excess as does not exceed the amount of the class 1 augmented bond rate exploration expenditure; and

B is the long-term bond rate in relation to the financial year;

shall be taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to the project on the first day of the next succeeding financial year.

3 Before paragraph 34A ( 4 ) (a)

Insert:

(aa) the class 2 uplifted exploration expenditure; and

4 Paragraphs 35 ( 3 ) (a) to (d)

Repeal the paragraphs, substitute:

(a) the class 2 uplifted exploration expenditure; and

(b) the class 1 augmented bond rate general expenditure; and

(c) the class 1 augmented bond rate exploration expenditure; and

(d) the class 2 uplifted general expenditure; and

(e) the resource tax expenditure; and

(f) the acquired exploration expenditure; and

(g) the starting base expenditure; and

(h) the class 2 GDP factor expenditure; and

(i) the class 1 GDP factor expenditure; and

5 Paragraphs 35C ( 5 ) (d) and (f)

     Repeal the paragraphs.

6 Subparagraphs 35D ( 3 ) (a)(iv) and (vi) and ( 4 ) (a)(iv) and (vi)

     Repeal the subparagraphs.

7 Paragraphs 35E ( 3 ) (d) and (f)

     Repeal the paragraphs.

(2) Page 32 (after line 4), at the end of the Bill, add:

Schedule 4—Ending transferability of exploration expenditure

Part 1—Amendment of the Petroleum Resource Rent Tax Assessment Act 1987

Petroleum Resource Rent Tax Assessment Act 1987

1 Section 2

  Repeal the following definitions:

(a) the definition of annual transfer;

(b) the definition of instalment transfer;

(c) the definition of instalment transfer charge period;

(d) the definition of instalment transfer excess;

(e) the definition of instalment transfer interest charge.

2 Section 2 (definition of related charge)

  Repeal the definition, substitute:

  related charge means shortfall interest charge, or general interest charge, in relation to tax.

3 Section 2 (definition of transferable exploration expenditure )

  Repeal the definition.

4 Subsections 10 ( 5 ) and ( 6 )

  Repeal the subsections.

5 Subsection 22 ( 1 )

  Repeal the subsection, substitute:

  (1) Where, in relation to a petroleum project and a year of tax, the assessable receipts derived by a person exceed the sum of the deductible expenditure incurred by the person, the person is taken for the purposes of this Act to have a taxable profit in relation to the project and the year of tax of an amount equal to the excess.

6 Paragraphs 32(e) and (f)

  Repeal the paragraphs.

7 Sections 35A and 35B

  Repeal the sections.

8 Paragraphs 35C ( 5 ) (e) and (f)

  Repeal the paragraphs.

9 Subparagraphs 35D ( 3 ) (a)(v) and (vi) and ( 4 ) (a)(v) and (vi)

  Repeal the subparagraphs.

10 Paragraphs 35E ( 3 ) (e) and (f)

  Repeal the paragraphs.

11 Sections 36A and 36B (notes)

  Omit "(before the GDP factor or the augmented bond rate is applied to the amount under Schedule 1)".

12 Division 3A of Part V

  Repeal the Division.

13 Subparagraph 48 ( 1 ) (a)(i)

  Omit "(other than class 2 augmented bond rate exploration expenditure or class 2 GDP factor expenditure)".

14 Subparagraph 48 ( 1 ) (a)(ia)

  Repeal the subparagraph.

15 Subsection 48 ( 2 )

  Repeal the subsection.

16 Paragraph 48A ( 5 ) (b)

  Omit "(other than class 2 augmented bond rate exploration expenditure or class 2 GDP factor expenditure)".

17 Paragraph 48A ( 5 ) (c)

  Repeal the paragraph.

18 Sections 58G and 58H

  Repeal the sections.

19 Subsection 58K ( 1 ) (heading)

  Repeal the heading.

20 Subsection 58K ( 1 )

  Omit "(1)".

21 Subsection 58K ( 2 )

  Repeal the subsection.

22 Subsection 58M ( 1 ) (heading)

  Repeal the heading.

23 Subsection 58M ( 1 )

  Omit "(1)".

24 Subsection 58M ( 2 )

  Repeal the subsection.

25 Section 58N (note)

  Repeal the note.

26 Sections 58Q, 58R, 58RA and 58S

  Repeal the sections.

27 Section 64

  Omit ", deductible expenditure or transferable exploration expenditure", substitute "or deductible expenditure".

28 Paragraph 67 ( 2 ) (e)

  Omit "subsection 5(4), 20(8), 45A(3), 45B(3) or 45C(6)", substitute "subsection 5(4) or 20(8)".

29 Paragraph 85 ( 1 ) (b)

  Omit "tax;", substitute "tax.".

30 Paragraph 85 ( 1 ) (c)

  Repeal the paragraph.

31 Paragraph 85 ( 2 ) (a)

  Omit ", shortfall interest charge or instalment transfer interest charge", substitute "or shortfall interest charge".

32 Subparagraphs 85 ( 2 ) (b)(i) and (ii)

  Omit ", shortfall interest charge or instalment transfer interest charge", substitute "or shortfall interest charge".

33 Paragraph 97(1A)(aa)

  Repeal the paragraph.

34 Paragraph 97(1A)(b)

  Omit "amounts; and", substitute "amounts.".

35 Paragraph 97(1A)(c)

  Repeal the paragraph.

36 Subsection 97(1A) (note)

  Repeal the note.

37 Sections 98A to 98D

  Repeal the section.

38 Schedule 1

  Repeal the Schedule.

39 Subclauses 23(5A) and (5B) of Schedule 2

  Repeal the subclauses.

Part 2—Application, transition and savings provisions

Division 1—Application of amendments to deductible expenditure and assessable receipts

40 Application—deductible expenditure and assessable receipts

  (1) The object of this item is to provide for the transfer of exploration expenditure incurred by a person in relation to a petroleum project to cease as of 1 July 2019.

  (2) The amendments made by this Schedule apply to the following:

  (a) an amount of deductible expenditure incurred, or taken to be incurred, in the financial year starting on 1 July 2019 or any later financial year;

  (b) an amount of assessable receipts derived, or taken to be derived, in the financial year starting on 1 July 2019 or any later financial year.

Division 2—General application of amendments

41 Object

  The object of this Division is to ensure that, despite the repeals and amendments made by this Schedule, the full legal and administrative consequences of:

  (a) any act done or omitted to be done; or

  (b) any state of affairs existing; or

(c) any period ending;

  before 1 July 2019 can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken on or after that day.

42 Making and amending assessments, and doing other things, in relation to past matters

  Even though an Act is amended by this Schedule, the amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument:

  (a) making or amending an assessment (including under a provision that is itself repealed or amended);

  (b) exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);

  in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before 1 July 2019.

43 Saving of provisions about effect of assessments

  If a provision or part of a provision that is repealed or amended by this Schedule deals with the effect of an assessment, the repeal or amendment is disregarded in relation to assessments made on, before or after 1 July 2019 in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before 1 July 2019.

(1) Schedule 1, items 4 and 5, page 3 (line 14) to page 4 (line 26), omit the items, substitute:

4 Subsection 34A ( 4 )

  Insert:

  uplift rate:

  (a) if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

  (b) otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

(2) Schedule 1, page 5 (after line 4), after item 6, insert:

6A Subsection 33 ( 3 )

  Repeal the subsection, substitute:

  (3) For the purposes of subsection (1) or (2), if the class 1 augmented bond rate general expenditure incurred by a person in a financial year (the assessable year) in relation to a petroleum project exceeds the assessable receipts derived by the person in the assessable year in relation to the project, the person is taken to incur, in relation to the project and on the first day of the next financial year, an amount of class 1 augmented bond rate general expenditure worked out in accordance with the formula:

where:

  Available excess means the amount of the excess.

  uplift rate:

  (a) if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

  (b) otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

6B Subsection 34 ( 3 )

  Repeal the subsection, substitute:

  (3) For the purposes of subsection (1) or (2), if the sum of:

  (a) the class 1 augmented bond rate general expenditure; and

  (b) the class 1 augmented bond rate exploration expenditure;

incurred by a person in a financial year (the assessable year) in relation to a petroleum project exceeds the assessable receipts derived by the person in the assessable year in relation to the project, the person is taken to incur, in relation to the project and on the first day of the next financial year, an amount of class 1 augmented bond rate exploration expenditure worked out in accordance with the formula:

where:

  Available excess means so much of the excess as does not exceed the class 1 augmented bond rate exploration expenditure.

  uplift rate:

  (a) if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

  (b) otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

(3) Schedule 1, page 6 (after line 12), after item 20, insert:

20A Subsection 35C ( 5 ) (formula)

  Repeal the formula, substitute:

20B Subsection 35C ( 5 ) (definition of Augmented bond rate )

  Repeal the definition.

20C Subsection 35C ( 5 )

  Insert:

  uplift rate:

  (a) if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

  (b) otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

(4) Schedule 1, page 6 (before line 13), before item 21, insert:

20D Subparagraphs 35D ( 3 ) (a)(iii) and (v) and ( 4 ) (a)(iii) and (v)

  Omit "class 2 augmented bond rate", substitute "class 2 uplifted".

20E Subsection 35D ( 4 ) (formula)

  Repeal the formula, substitute:

20F Subsection 35D ( 4 ) (definition of Augmented bond rate )

  Repeal the definition.

20G Subsection 35D ( 4 )

  Insert:

  uplift rate:

  (a) if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

  (b) otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

(5) Schedule 1, page 6 (after line 14), after item 21, insert:

21A Subsection 35E ( 3 ) (formula)

  Repeal the formula, substitute:

21B Subsection 35E ( 3 ) (definition of Augmented bond rate )

  Repeal the definition.

21C Subsection 35E ( 3 )

  Insert:

  uplift rate:

  (a) if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

  (b) otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

(6) Schedule 1, item 44, page 8 (line 24) to page 9 (line 2), omit paragraph 8(3)(a) of Schedule 1, substitute:

  (a) if the standard uplift expenditure year is the financial year immediately before the assessable year—multiply the incurred exploration expenditure amount in relation to the standard uplift expenditure year by the long-term bond rate in relation to the standard uplift expenditure year plus 1.05;

(7) Schedule 1, item 44, page 9 (lines 22 to 34), omit subparagraphs (i) to (iv) of the definition of uplift rate in paragraph 8(3)(b) of Schedule 1, substitute:

     (i) if the calculation year is 10 or more years after the standard uplift expenditure year—the GDP factor for the calculation year; or

     (ii) otherwise—the long-term bond rate in relation to the calculation year plus 1.05;

(8) Schedule 1, item 73, page 13 (line 33), omit "1.15", substitute "1.05".

(9) Schedule 1, item 73, page 14 (lines 1 to 17), omit paragraph 37(3)(a) of Schedule 1, substitute:

  (a) work out, in relation to the expenditure year and each later financial year ending before the transfer year, an amount in accordance with the formula:

     

     where:

       transferred amount means:

     (i) in making the calculation in relation to the expenditure year—the amount of expenditure actually transferred; and

     (ii) in making the calculation in relation to a later financial year—the amount calculated under this paragraph in relation to the expenditure and the immediately preceding financial year.

     uplift rate, for the financial year in relation to which the calculation is being made (the calculation year), means:

     (i) if the calculation year is 10 or more years after the expenditure year—the GDP factor for the calculation year; and

     (ii) otherwise—the long-term bond rate in relation to the calculation year plus 1.05;

(1) Page 32 (after line 4), at the end of the Bill, add:

Schedule 3—Notification of deductible expenditure

Petroleum Resource Rent Tax Assessment Act 1987

1 After section 113

  Insert:

113A Notification of deductible expenditure to the Commissioner

     If a person in relation to a petroleum project incurs a deductible expenditure in a financial year, the person must give notice of the expenditure to the Commissioner in the approved form within 30 days after the end of the financial year.

Note 1: Subdivision 388-B in Schedule 1 to the Taxation Administration Act 1953 contains rules about giving notices in the approved form. Subdivision 286-C in that Schedule provides for an administrative penalty for failure to give notice in the approved form on time.

Note 2: For the meaning of deductible expenditure, see section 32.

2 Application provision

  Section 113A of the Petroleum Resource Rent Tax Assessment Act 1987, as inserted by this Schedule, applies in relation to the financial year stating on 1 July 2019 and each later financial year.

Question negatived.