Shipping costs
16 Shipping costs
(1) The shipping costs that are allowed in a royalty year for the purpose of calculating the sales value of petroleum produced from a project area (the shipping costs), are the following:
(a) in the case of petroleum that is exported from Australia – all freight charges, dead freight costs and marine insurance costs;
(b) in the case of petroleum that is not exported from Australia – the freight and insurance costs incurred in delivering the petroleum to the purchaser or transferee.
For subsection (1), shipping costs do not include:
(a) any charges mentioned in subsection (1) for which the licensee, permittee or operator, or a related party of the licensee, permittee or operator, received reimbursement or compensation or charged to another person; or
any excluded costs.
For subsection (1), shipping costs must be incurred by:
(a) the licensee, permittee or operator of the project area from a third party directly in relation to the sale of the petroleum; or
(b) a related party of the licensee, permittee or operator, of the project area from a third party directly in relation to the sale of the petroleum on arm's length terms with no mark up.
This Act’s bill:Explanatory statementSecond reading speech
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