Gazette Notice
PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987
COMBINATION CERTIFICATE (C015) – PETROLEUM PRODUCTION LICENCES PL171, PL179, PL180, PL201, PL211, PL212, PL228, PL229, PL247, PL257, PL263, PL273, PL274, PL275, PL276, PL277, PL278, PL279, PL398, PL442, PL466, PL474
As the certifying Minister for Section 20 of the Petroleum Resource Rent Tax Assessment Act 1987, I have issued a combination certificate for production licences PL171, PL179, PL180, PL201, PL211, PL212, PL228, PL229, PL247, PL257, PL263, PL273, PL274, PL275, PL276, PL277, PL278, PL279, PL398, PL442, PL466, PL474. The production licences are to be treated as a single project for the purposes of the Petroleum Resource Rent Tax Assessment Act 1987 and related Acts.
Subject to the Administrative Appeals Tribunal Act 1975, a person or persons whose interests are affected by the above decision may make an application to the Tribunal for review of the decision.
The Hon Martin Ferguson AM MP
Minister for Resources and Energy
Overview
The Petroleum Resource Rent Tax Assessment Act 1987 was enacted to address the need for a specific tax regime applicable to petroleum resource rent. This Act was introduced by the Commonwealth Parliament with the policy objective of ensuring that the economic benefits of petroleum resources are appropriately captured for the nation. The Act provides a framework for the assessment and collection of taxes on the rents derived from petroleum activities, ensuring that the government receives a fair share of the profits generated by these activities. The issuing of a combination certificate under this Act, as evidenced by the recent Gazette Notice, allows for the consolidation of multiple production licences into a single project for tax purposes, streamlining the administration and compliance requirements for operators involved in petroleum production. This approach facilitates more efficient tax collection and management, aligning with the overarching goal of the Act to effectively regulate and tax petroleum resource rents.
Scope and Application
The Petroleum Resource Rent Tax Assessment Act 1987 applies to the combination of specific petroleum production licences listed in the gazette notice, treating them as a single project for the purposes of this Act and related legislation. The Act's application is restricted to the geographic and jurisdictional boundaries defined by the production licences PL171, PL179, PL180, PL201, PL211, PL212, PL228, PL229, PL247, PL257, PL263, PL273, PL274, PL275, PL276, PL277, PL278, PL279, PL398, PL442, PL466, and PL474, which are specified in the gazette. The Act's application encompasses the entities holding these licences and the transactions and conduct related to their petroleum production activities. There are no stated exclusions or exemptions in this gazette notice, and the thresholds for the combination of licences are implicitly defined by the specific licences listed. The scope of the Act may be extended or restricted through subordinate instruments as necessary, but this particular gazette notice focuses on the specific combination of licences mentioned.
Key Provisions
The Petroleum Resource Rent Tax Assessment Act 1987 (section 20) allows the Minister for Resources and Energy to issue a combination certificate, as has been done in this instance for the specified petroleum production licences (PL171, PL179, PL180, PL201, PL211, PL212, PL228, PL229, PL247, PL257, PL263, PL273, PL274, PL275, PL276, PL277, PL278, PL279, PL398, PL442, PL466, PL474). Section 20 of the Act mandates that once a combination certificate is issued, the specified production licences are to be treated as a single project for the purposes of the Act and related legislation. This effectively consolidates the regulatory treatment of the various licences into one streamlined approach, simplifying compliance and oversight for both the regulator and the licensees.
The obligations imposed by this Act on the parties involved, particularly the licensees, include adhering to the unified project framework established by the combination certificate. This means that any reporting, compliance, and tax obligations that would ordinarily be separate for each licence now fall under a single set of requirements. The licensees must ensure that all activities, financial reporting, and tax liabilities are managed in accordance with the unified project status. Failure to comply with these obligations could lead to significant repercussions, including the potential for the combination certificate to be revoked, thereby reverting the licences to their individual statuses.
Under the Act, there are potential consequences for breaches of the obligations or requirements set forth. While specific offences and penalties are not detailed in the gazette notice, it is understood that breaches of the Petroleum Resource Rent Tax Assessment Act 1987 can lead to enforcement actions. These can include administrative penalties, fines, or even legal proceedings against the offending parties. The severity of these consequences will depend on the nature and extent of the breach, but they underscore the importance of strict compliance with the unified project requirements established by the combination certificate.