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legality of retroactive application government agency’s discussion See 13 November 2017
to 2013, the Australian Tax Office’s paper outlining proposed Meeting Notes HERE
(ATO) proposed draft Taxation exploration policy reforms and the
Determination on Multiclient impact on the seismic industry. Canada
Seismic Data. The IAGC is also
approaching the Australian Released on 30 October, the IAGC Works with Canada
Petroleum Production & Exploration proposed policy reforms are aimed to Improve Environmental
Association (APPEA) to assist at ensuring that Australia remains Regulatory Process
with government engagement. competitive as an investment (updated content)
The IAGC Austral Committee has destination for the global petroleum
been working with the ATO on industry. Some of the issues with The IAGC submitted comments on
this issue since March 2017. the current offshore exploration 15 September in response to the
regime identified through the review government of Canada’s June 2017
On 22 September 2017, the IAGC include non-financial barriers, release of a draft discussion paper
commented on the ATO’s proposed such as accessibility to areas for on Environmental and Regulatory.
draft Taxation Determination on bidding, permit size, permit length/ The discussion paper outlines
Multiclient Seismic Data. The time, work program expectations proposed changes to Canada’s
ATO is attempting to change and work program flexibility. environmental assessment and
the interpretation of multiclient regulatory process. The goals of the
data acquisition from a taxable The Offshore Petroleum Resource regulatory changes are to increase
expense to categorizing the Management Review (the Review) transparency of the environmental
data as a capital asset with a 15- considered whether the current assessment process and to create a
year depreciating life that will regulatory environment adequately more predictable timeline of each
affect the revenue recognition reflects the realities of offshore individual phase of the process.
of multiclient data projects. exploration in the 21st century—
including the challenges of operating In our comment letter, the IAGC
The ATO has not finalized and in lightly explored or frontier areas. agrees with Canada’s goals. The
published the determination. Once The discussion paper primarily letter, however, delineates our
published, it will be followed by focuses on possible mechanisms to concern that certain proposed
a 28-day public comment period. improve accessibility to exploration changes will significantly increase
Without significant changes, this acreage—addressing the issues an already lengthy process.
new tax interpretation of existing identified in the review—and to
regulation will have substantial ensure that the needs of frontier After review of public comments,
impact on IAGC’s members’ exploration are considered. the government of Canada will
ability to operate in Australia. release proposed regulations in
Although Australia’s annual the fall of 2017. At such time, the
IAGC Comment Letter offshore petroleum exploration IAGC will review and comment,
acreage release process has ensuring our industry’s continued
IAGC Meets with the Australian worked well for more than 30 representation as the regulatory
Offshore Resources Branch to years, industry feedback through process moves forward.
Discuss Exploration Policy Reform the review suggested that it may
be a good time to investigate
The IAGC Austral Committee opportunities for improvements.
met with the Australian Offshore
Resources Branch - Department of The Austral Committee will
Industry, Innovation and Science continue to meet with the
at the NOPSEMA Office in Perth Australian Offshore Resources
on 13 November to review the Branch to resolve any issues.
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