Petroleum resource rent tax (PRRT) may affect you if you're entitled to receipts from the sale of petroleum products. The PRRT is a tax generally on profits generated from the sale of marketable petroleum commodities (MPCs).
MPCs include:
- stabilised crude oil
- sales gas
- condensate
- liquefied petroleum gas
- ethane
- shale oil
- any other product declared by regulation to be an MPC.
PRRT has applied to offshore petroleum projects (except for the North West Shelf project and the Joint Petroleum Development Area) since 1987. The Bass Strait project has been subject to PRRT since 1990.
In 2012, the PRRT regime was applied to onshore petroleum projects and the North West Shelf project but not to the Joint Petroleum Development Area.
From 1 July 2019, onshore petroleum projects were removed from the scope of the PRRT. As a result, provisions that relate to initial amounts of starting base expenditure and the consolidation single entity rule were repealed.
In addition, from 1 July 2019, new uplift rates apply to certain categories of carried-forward expenditure.
See also:
- Petroleum Resource Rent Tax Assessment Act 1987External Link
- Petroleum Resource Rent Tax Assessment Regulation 2015External Link