Petroleum Resource Rent Tax Assessment Act 1987 - Combination Certificate C018I

Overview

The Petroleum Resource Rent Tax Assessment Act 1987 was enacted to provide for the assessment and collection of a resource rent tax on petroleum activities. This Act addresses the need for a fair and structured taxation system on petroleum resources, ensuring that revenue is appropriately derived from the exploitation of these natural assets. The legislation was enacted by the Australian Parliament, with the overarching policy objective being to balance the interests of resource developers with the need for revenue generation from the country's petroleum resources. As the Minister for Industry and Science, the Hon Ian Macfarlane MP has issued a combination certificate under Section 20 of this Act, treating the specified production licences as a single project for the purposes of the Act and related legislation. This administrative action allows for streamlined management and assessment of the petroleum activities covered under these licences.

Scope and Application

The Petroleum Resource Rent Tax Assessment Act 1987 applies to the holders of specified petroleum production licences, which are listed in the certificate issued by the Minister for Industry and Science. This Act is concerned with the assessment of the petroleum resource rent tax (PRRT) for petroleum activities, and the combination certificate issued under Section 20 of the Act amalgamates the listed production licences into a single project for the purposes of tax assessment and compliance. This legislative action extends across the Commonwealth of Australia, impacting entities engaged in petroleum production within the specified licences. The Act does not specify exclusions, exemptions, or thresholds in the certificate itself but refers to the broader provisions of the Act and related legislation for such details. The application and enforcement of this Act may be further defined or detailed in subordinate instruments, regulations, or guidelines issued under the authority of the Act.

Key Provisions

The key operative sections of the Petroleum Resource Rent Tax Assessment Act 1987 are Sections 20 and 20A. Section 20 allows the Minister to issue a combination certificate, under which multiple production licences are treated as a single project for the purposes of the Act (s 20). Section 20A specifies the procedure for making a combination certificate and the effect it has on the combined licences (s 20A). Under this certificate, the listed production licences (PPL6 to PPL258, and PL23 to PL509) are treated as a single project, streamlining tax assessments and compliance requirements. The Act imposes specific obligations on the holders of the production licences named in the certificate. These obligations include ensuring that all activities undertaken under the combined licences comply with the terms of the Petroleum Resource Rent Tax Assessment Act 1987, and related Acts (s 20A(1)). Licence holders must also maintain accurate records and provide necessary documentation to support their compliance with the Act. Additionally, they must report any changes in their operations or project scope that could affect the tax assessment. Breaching the provisions of the Petroleum Resource Rent Tax Assessment Act 1987 can result in both civil and criminal penalties. For civil penalties, the Act allows for fines up to a significant amount, as specified in the relevant provisions (s 35). Additionally, criminal offences under the Act can lead to imprisonment for individuals responsible for non-compliance, with maximum penalties specified in the Act (s 36). The severity of the penalties depends on the nature and extent of the breach, with more severe breaches resulting in harsher penalties.