Petroleum Royalty Act 2023

(1) Subject to subsection (2), the costs that are allowed in a royalty year for the purpose of calculating deductible costs under this Act in relation to petroleum produced from a project area (the allowable costs) are the following:

(a) a pipeline tariff for transporting the petroleum through a pipeline to its first saleable point;

(b) a processing plant toll or other charge for processing the petroleum before its first saleable point;

(c) field gathering costs to transport the petroleum from the wellhead to processing or storage facilities;

(d) the operating costs of a post-wellhead activity that is directly related to:

(i) the treatment, processing, refining or storage of the petroleum; or

(e) a capital allowance deduction incurred by the licensee, permittee or operator on a post-wellhead facility calculated in accordance with:

(i) if Australian income tax treatment applies to the petroleum – the applicable Australian income tax treatment of the facility; or

(ii) if no Australian income tax treatment applies to the petroleum – a method approved in writing by the Commissioner of Territory Revenue;

(f) a cost or expense directly related to a post-wellhead activity in relation to any of the following:

(ii) centralised services that control, influence or direct strategic management of the operation of a licence area, if the services were performed wholly in the Territory;

(iii) labour, employee and personnel costs, including travel and ancillary costs, in relation to an employee or contractor working solely in the Territory:

(a) be incurred by a licensee, permittee or operator, or a related party to the licensee, permittee or operator, in relation to the petroleum in the royalty year; and