On 2 November 2011, the government introduced the extension to the petroleum resource rent tax (PRRT) legislative package into Parliament.
The extension to the PRRT is to come into effect from 1 July 2012. It will cover all Australian onshore and offshore oil and gas projects, including the North West Shelf.
Background
On 2 July 2010, the government announced new resource taxation arrangements would apply from 1 July 2012.
The government-appointed Policy Transition Group (PTG), co-chaired by the Minister for Resources, the Hon. Martin Ferguson, and Mr Don Argus AC, consulted with industry and made recommendations to the government about the development of the technical design of the new MRRT and the transition of existing petroleum projects to the PRRT.
The PTG presented its recommendations to the government in December 2010. On 22 December, the government publicly released the - Policy Transition Group Report to the Australian Government: New resource taxation arrangements.
On 24 March 2011, the government formally accepted the resource tax recommendations and announced the formation of the resource tax implementation group (RTIG). The implementation group's role was to engage with industry to support the legislative drafting stage.
On 26 August 2011, the government issued, for public and industry comment, the exposure draft legislation and draft explanatory materials for the proposed extension to the PRRT.
Public consultation by the ATO
The ATO is also consulting with industry and tax professionals, through the Resource Rent Tax Sub-committee of the National Tax Liaison Group, and is issuing draft papers aimed at giving practical early guidance to industry on how the ATO may administer aspects of the proposed extension to the PRRT. These early guidance papers are for industry and community comment.
Comments on the early guidance will be accepted up until passage of the legislation. These comments will be reviewed by the ATO in consultation with the Resource Rent Tax Sub-committee and may be taken into account in later products.
For more information refer to the following:
Last Modified: Tuesday, 3 July 2012