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This is a Bill, not an Act. For current law, see the Acts databases.
2019-2020-2021
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Offshore Petroleum (Laminaria and
Corallina Decommissioning Cost
Recovery Levy) Bill 2021
No. , 2021
(Treasury)
A Bill for an Act to impose a levy on registered
holders of petroleum production licences, and for
related purposes
No. , 2021
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Act binds the Crown .......................................................................... 2
4
Extension to external Territories ....................................................... 2
5
Extra-territorial application ............................................................... 2
6
Definitions ......................................................................................... 2
7
Meaning of
levy year
......................................................................... 4
8
Meaning of
Commonwealth's unrecovered costs
for a levy
year .................................................................................................... 5
9
Act does not impose levy on property of a State ............................... 6
10
Imposition of levy.............................................................................. 6
11
Amount of levy .................................................................................. 6
12
When instrument takes effect ............................................................ 7
13
Regulations ........................................................................................ 8
No. , 2021
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
1
A Bill for an Act to impose a levy on registered
1
holders of petroleum production licences, and for
2
related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the
Offshore Petroleum (Laminaria and Corallina
6
Decommissioning Cost Recovery Levy) Act 2021
.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
Section 3
2
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
No. , 2021
column 2 of the table. Any other statement in column 2 has effect
1
according to its terms.
2
3
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act.
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
4
enacted. It will not be amended to deal with any later amendments of
5
this Act.
6
(2) Any information in column 3 of the table is not part of this Act.
7
Information may be inserted in this column, or information in it
8
may be edited, in any published version of this Act.
9
3 Act binds the Crown
10
This Act binds the Crown in right of each of the States, of the
11
Australian Capital Territory and of the Northern Territory.
12
However, it does not bind the Crown in right of the
13
Commonwealth.
14
4 Extension to external Territories
15
This Act extends to each external Territory to which the
Offshore
16
Petroleum and Greenhouse Gas Storage Act 2006
extends.
17
Note:
See section 34 of the
Offshore Petroleum and Greenhouse Gas
18
Storage Act 2006
.
19
5 Extra-territorial application
20
This Act extends to acts, omissions, matters and things outside
21
Australia.
22
6 Definitions
23
In this Act:
24
Section 6
No. , 2021
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
3
amount
includes a nil amount.
1
decommissioning
includes all activities associated with or
2
connected to the decommissioning of the Northern Endeavour,
3
including:
4
(a) the disconnection, removal and disposal of the Northern
5
Endeavour; and
6
(b) the suspension, plugging (whether temporary or permanent)
7
and abandonment of wells in the Laminaria and Corallina oil
8
fields and flushing of associated pipelines; and
9
(c) removal or any other treatment of subsea infrastructure from
10
the Laminaria and Corallina oil fields; and
11
(d) associated environmental remediation.
12
decommissioning-related activities
means all activities carried out
13
by, or on behalf of, the Commonwealth that relate (whether
14
directly or indirectly) to the Northern Endeavour and the wells and
15
subsea infrastructure in the Laminaria and Corallina oil fields,
16
including:
17
(a) operating (in any mode) and maintaining the Northern
18
Endeavour, wells and infrastructure; and
19
(b) decommissioning and activities in preparation for
20
decommissioning; and
21
(c) obtaining insurance in relation to the matters mentioned in
22
paragraphs (a) and (b).
23
distributed levy rate
, for a levy year, has the meaning given by
24
subsection 11(2).
25
Laminaria and Corallina oil fields
means the areas covered by
26
petroleum production licences AC/L5 and WA-18-L.
27
leviable entity
, for a levy year, means a person who is the
28
registered holder of a petroleum production licence at any time
29
during the levy year.
30
levy
means levy imposed by this Act.
31
levy year
has the meaning given by section 7.
32
Section 7
4
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
No. , 2021
Northern Endeavour
means the Northern Endeavour floating
1
production storage and offtake facility (Australian General
2
Shipping Register official number 860769).
3
petroleum
has the same meaning as in the
Offshore Petroleum and
4
Greenhouse Gas Storage Act 2006
.
5
petroleum amount
, for a leviable entity for a levy year, has the
6
meaning given by subsection 11(1).
7
petroleum production licence
has the same meaning as in the
8
Offshore Petroleum and Greenhouse Gas Storage Act 2006
.
9
registered holder
has the same meaning as in the
Offshore
10
Petroleum and Greenhouse Gas Storage Act 2006
.
11
Resources Minister
means the Minister administering the
Offshore
12
Petroleum and Greenhouse Gas Storage Act 2006
.
13
total decommissioning cost
means the total amount in dollars of
14
net costs reasonably incurred by the Commonwealth in relation to
15
the decommissioning-related activities.
16
7 Meaning of levy year
17
(1) Each of the following is a
levy year
:
18
(a) the financial year beginning on 1 July 2021;
19
(b) each subsequent financial year, ending with the financial year
20
beginning on 1 July 2029.
21
Termination of levy
22
(2) Despite subsection (1), at any time during a financial year (the
23
current year
) beginning on or before 1 July 2028, the Resources
24
Minister may determine, by legislative instrument, that no financial
25
year after the current year is a
levy year
for the purposes of this
26
Act.
27
(3) A determination made under subsection (2) has effect accordingly.
28
Note:
For when the determination takes effect, see section 12.
29
Section 8
No. , 2021
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
5
(4) The Resources Minister may only make a determination under
1
subsection (2) if the Resources Minister is satisfied that:
2
(a) the total decommissioning cost, if calculated at the end of the
3
current year, would not exceed the total of the following:
4
(i) the amount of levy that is likely to be assessed for the
5
current year;
6
(ii) the amount of levy that has been assessed for previous
7
levy years; and
8
(b) the Commonwealth is unlikely to incur costs in relation to
9
decommissioning-related activities after the end of the
10
current year.
11
8 Meaning of Commonwealth's unrecovered costs for a levy year
12
(1) If the Resources Minister makes a determination for a levy year
13
under subsection (2), the
Commonwealth's unrecovered costs
for
14
the levy year are the amount specified in the determination.
15
Note:
For the timing of when instruments take effect, see section 12.
16
(2) The Resources Minister may, by legislative instrument, make a
17
determination for a levy year specifying the amount in dollars by
18
which the total amount of levy assessed for previous levy years
19
falls short of the total decommissioning cost, as that cost is
20
calculated at the end of the levy year for which the determination is
21
made.
22
(3) A determination for a levy year under subsection (2):
23
(a) must not be made unless the Resources Minister considers
24
that the levy rate of $0.48 that would otherwise apply under
25
subsection 11(1) would result in the total amount of levy to
26
be assessed for the levy year exceeding the amount to be
27
specified in the determination; and
28
(b) may only be made within the period of 6 months after the end
29
of the levy year.
30
Section 9
6
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
No. , 2021
9 Act does not impose levy on property of a State
1
(1) This Act does not impose a tax on property of any kind belonging
2
to a State.
3
(2) In this section,
property of any kind belonging to a State
has the
4
same meaning as in section 114 of the Constitution.
5
(3) For the purposes of this section, assume that a reference in
6
section 114 of the Constitution to a State includes a reference to the
7
Australian Capital Territory and the Northern Territory.
8
10 Imposition of levy
9
Levy is imposed on a leviable entity for a levy year.
10
11 Amount of levy
11
(1) The amount of levy payable by a leviable entity for a levy year is
12
worked out using the following formula:
13
Petroleum amount for
Levy rate
the entity for the levy year
14
where:
15
levy rate
is the lesser of the following:
16
(a) $0.48;
17
(b) if a determination of the Commonwealth's unrecovered costs
18
for the levy year is in effect under section 8--the distributed
19
levy rate for the levy year (see subsection (2) of this section).
20
petroleum amount
,
for the entity for the levy year, is the total
21
quantity of all petroleum, in barrels of oil equivalent and as
22
measured at the wellhead, recovered by the entity during the levy
23
year under any petroleum production licences held by the entity.
24
(2) The
distributed levy rate
for a levy year is the amount worked out
25
using the following formula:
26
Section 12
No. , 2021
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
7
Commonwealth's unrecovered
costs for the levy year
Total petroleum amount
for the levy year
1
where:
2
total petroleum amount
for the levy year is the total of petroleum
3
amounts for all leviable entities for the levy year, assuming that the
4
only information relevant to working out that total amount is:
5
(a) information reported in returns given to the Commissioner of
6
Taxation under section 125-5 in Schedule 1 to the
Taxation
7
Administration Act 1953
on or before the 31 December
8
following the levy year; and
9
(b) any other relevant information reasonably available to the
10
Commissioner before the Commissioner first makes an
11
assessment of an amount of levy for the levy year.
12
Rounding of amounts
13
(3) An amount of levy worked out under subsection (1) must be
14
rounded to the nearest whole dollar (rounding up in the case of 50
15
cents).
16
(4) The following must be rounded to 2 decimal places (rounding up if
17
the third decimal place is 5 or more):
18
(a) a petroleum amount for a leviable entity for a levy year;
19
(b) the distributed levy rate for a levy year.
20
12 When instrument takes effect
21
(1) This section applies to an instrument made by the Resources
22
Minister under subsection 7(2) (termination of levy) or 8(2)
23
(Commonwealth's unrecovered costs).
24
(2) If neither House of Parliament passes a resolution disallowing the
25
instrument, the instrument takes effect:
26
(a) on the day immediately after the last day upon which such a
27
resolution could have been passed; or
28
Section 13
8
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost
Recovery Levy) Bill 2021
No. , 2021
(b) if a later day is specified in the instrument--on that later day.
1
(3) If either House of Parliament passes a resolution disallowing the
2
instrument, the instrument does not take effect.
3
13 Regulations
4
The Governor-General may make regulations prescribing matters:
5
(a) required or permitted by this Act to be prescribed by the
6
regulations; or
7
(b) necessary or convenient to be prescribed for carrying out or
8
giving effect to this Act.
9