Government opens Petroleum Resource Rent Tax consultation
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The news: The Federal Government has launched its consultation on the next component of regulations to improve the Petroleum Resource Rent Tax (PRRT) regime, as recommended in the Gas Transfer Pricing Review and announced in the 2023-24 Budget.
The context: The government said the proposed changes to the PRRT are designed to ensure the offshore LNG industry "pays more tax sooner", providing industry and investors with policy certainty to allow the sufficient supply of gas domestically and abroad.
The draft regulations include clarifications of the existing rules, as well as added measures aimed at ensuring taxable profits from LNG projects are accounted for appropriately.
These include measures that improve the integrity of asset life calculations, remove asymmetry in the current rules, and clarify the treatment of LNG facilities first entering the PRRT regime.
The government said that the proposed changes will support its budget repair efforts, fund the delivery of public services, and help build a more resilient economy.
The draft regulations for consultation and feedback are available on Treasury’s website until April 2024. The government will also consult on draft legislation implementing the remaining elements of its response to the Gas Transfer Pricing Review later in 2024, focusing on improving the administration of the PRRT.
The source: Treasurer media release
