PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987
COMBINATION CERTIFICATE (C017) – PETROLEUM PRODUCTION LICENCES OL4 and OL5
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 OL4 and OL5. 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 Gary Gray AO MP
Minister for Resources and Energy
Overview
The Petroleum Resource Rent Tax Assessment Act 1987 was enacted to address the need for a specific assessment framework for the taxation of petroleum resources in Australia. This Act was introduced by the Commonwealth Parliament with the policy objective of ensuring that the revenue generated from petroleum activities contributes appropriately to the national economy. The Act establishes the basis for assessing and collecting the Petroleum Resource Rent Tax (PRRT) from petroleum activities, ensuring that the rent derived from these resources is adequately accounted for and taxed. The issuance of a combination certificate for production licences OL4 and OL5 under this Act is a mechanism to consolidate the assessment and taxation of related petroleum projects, treating them as a single entity for the purposes of the PRRT. This approach facilitates streamlined administration and compliance, ensuring that the tax obligations are managed efficiently within the legal framework established by the Act.
Scope and Application
The Petroleum Resource Rent Tax Assessment Act 1987 applies to entities involved in petroleum production in Australia, specifically targeting those who hold production licences. The Act is designed to assess and collect the Petroleum Resource Rent Tax (PRRT) on profits derived from petroleum activities. The combination certificate issued under this Act consolidates production licences OL4 and OL5, treating them as a single project for tax assessment purposes. This consolidation facilitates streamlined administration and tax collection processes, ensuring consistency and fairness in tax obligations across the specified licences. The Act's jurisdictional reach is national, applying to petroleum projects across Australia. The combination certificate is issued by the Minister for Resources and Energy, as per Section 20 of the Act, and any affected parties have the right to seek a review of this decision through the Administrative Appeals Tribunal as provided under the Administrative Appeals Tribunal Act 1975. The Act may be further detailed or modified through subordinate instruments, extending or restricting its application as necessary.
Key Provisions
The Petroleum Resource Rent Tax Assessment Act 1987, specifically Section 20, provides the legal framework for the combination of petroleum production licences. In this instance, the Minister for Resources and Energy has issued a combination certificate (C017) for production licences OL4 and OL5. This certificate mandates that these two licences are to be treated as a single project for the purposes of the Act and related legislation (Section 20(1)). The combination aims to streamline administrative processes, ensuring that tax assessments and related obligations are managed more efficiently under a unified project framework.
The obligations imposed by this combination certificate on the parties involved include adhering to the unified project status for tax purposes. Both licences must now operate under a single set of regulations and compliance requirements as outlined in the Petroleum Resource Rent Tax Assessment Act 1987. This includes unified reporting, tax assessments, and compliance with any other related legislative requirements. The parties must ensure all activities, financial reporting, and tax obligations are consolidated and managed in accordance with the stipulations of the combination certificate.
Breaches of the provisions outlined in the Petroleum Resource Rent Tax Assessment Act 1987 can result in significant legal consequences. While the specific offences and penalties are detailed elsewhere in the Act, non-compliance with the requirements of a combination certificate can lead to enforcement actions. The Act provides for both civil and criminal penalties, which may include fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach but are designed to enforce adherence to the legislative requirements and ensure proper tax collection and management within the petroleum industry.