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  • Petroleum resource rent tax gap 2016-17

    This information is for historical purposes only. If you require previously published content for past estimates, please email taxgap@ato.gov.au.

    The petroleum resource rent tax (PRRT) is a tax on profits generated generally from the sale of oil and gas products, known as marketable petroleum commodities (MPCs). It is levied in addition to income tax payable by the owners of petroleum projects, and is paid on:

    • stabilised crude oil
    • sales gas
    • condensate
    • liquefied petroleum gas (LPG)
    • ethane
    • shale oil
    • any other product declared by regulation to be an MPC.

    The PRRT gap is an estimate of the difference between the amount of PRRT payable under the law (theoretical PRRT liability) and the amount actually collected by us (actual PRRT revenue) for a defined period, typically a financial year.

    PRRT is assessed on a project basis, which means an entity calculates its liability separately for each project interest it holds.

    Estimate of the tax gap

    Our updated estimate of the PRRT gap covers four income years, from 2013–14 to 2016–17. For 2016–17 we estimate the PRRT gap to be $22 million or 2.1%. In other words, we estimate that almost 98% of the theoretical PRRT payable was paid in 2016–17.

    We use a model based bottom-up methodology to estimate the PRRT gap, which is considered the most appropriate method based on the size of the population, and the high level of coverage we have.

    Compliance in this population is high, with the main driver of the gap being complexities in the law which lead to different interpretations of how the law applies.

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      Last modified: 06 May 2021QC 65433