Petroleum Resource Rent Tax (Combination of Petroleum Projects–C022F) Certificate 2017

Overview

The Petroleum Resource Rent Tax (Combination of Petroleum Projects–C022F) Certificate 2017 was enacted to address the need for a more streamlined approach in the assessment of petroleum projects under the Petroleum Resource Rent Tax Assessment Act 1987. This notifiable instrument was introduced by Senator the Hon Matthew Canavan, the Minister for Resources and Northern Australia, and was signed on 7 December 2017. The primary objective of this certificate is to provide a mechanism for the combination of certain petroleum projects for the purposes of assessing the petroleum resource rent tax, thereby facilitating more efficient tax administration and potentially reducing the administrative burden on both the government and industry. The certificate repeals the previous Combination Certificate (C022F) and is subject to review by the Administrative Appeals Tribunal under the Administrative Appeals Tribunal Act 1975.

Scope and Application

The Petroleum Resource Rent Tax Assessment (Combination of Petroleum Projects–C022F) Certificate 2017 is a legislative instrument made under section 20 of the Petroleum Resource Rent Tax Assessment Act 1987. This certificate specifically applies to the combination of certain petroleum projects, as identified in the Schedules, and is designed to address how these projects are assessed for the purposes of the Petroleum Resource Rent Tax. The Act applies to the listed production licences, which include various petroleum projects identified by their specific licence numbers, such as PL41, PL42, and others up to PL1018. The geographic or jurisdictional reach of this certificate is within the Commonwealth of Australia, and it applies to entities involved in these specified petroleum projects. The certificate's application is restricted to the production licences mentioned in the Schedules, and any decisions made under this certificate can be subject to review by the Administrative Appeals Tribunal under the Administrative Appeals Tribunal Act 1975. The certificate repeals the previously issued instrument related to the combination of these petroleum projects.

Key Provisions

The main operative sections of this certificate, under the Petroleum Resource Rent Tax Assessment Act 1987, involve the repeal of a previous instrument related to the assessment of petroleum resource rent tax, specifically the Petroleum Resource Rent Tax Assessment Act 1987 - Combination Certificate (C022F). This repeal takes effect on the date the certificate is signed by the Minister for Resources and Northern Australia, as outlined in section 2 of the certificate. The authority to make this certificate is derived from section 20 of the Act, and it defines key terms such as "Act" and "Tribunal," with the latter being defined in the Administrative Appeals Tribunal Act 1975. Section 6 of the certificate specifies a list of production licences that are affected by this repeal, including PL41, PL42, and others, up to PL1018. This certificate imposes specific obligations on the entities governed by the repealed instrument, primarily through the repeal itself. The entities previously subject to the repealed instrument must now adjust their compliance and reporting practices in line with the new legislative framework that results from the repeal. The certificate also mandates that any affected parties may seek review of the decision to issue this certificate by the Administrative Appeals Tribunal, as per the provisions in the Administrative Appeals Tribunal Act 1975. This ensures that there is a mechanism for judicial review of the Minister's decision, providing a safeguard for those whose interests are impacted. The certificate does not explicitly outline specific offences or penalties for breaches, but it is implicit that any failure to comply with the new legislative framework following the repeal could result in legal consequences. Given that the repealed instrument was likely associated with tax assessments and compliance, non-compliance with the new requirements could lead to penalties under the Petroleum Resource Rent Tax Assessment Act 1987. Such penalties might include fines or other administrative sanctions, although the exact nature and maximum penalties would be detailed in the primary Act rather than the certificate itself.