• Petroleum resource rent tax: update to PCG 2016/13

    We have updated Practical Compliance Guideline PCG 2016/13 to include social infrastructure expenditure costs as expenditure that we now consider high risk.

    Social infrastructure expenditure relates to costs arising from a statutory requirement or an entity’s social license to operate as expenditure. This type of expenditure was out of scope when the guideline was first issued on 12 September 2016.

    The updated guideline will continue to apply to general project expenditure incurred on or after 1 July 2015.

    We have also published Law Administration Practice Statement PSLA 2017/1. This guides our staff in determining when the four-year amendment period applies. In this period you may correct an error in the transfer of transferrable exploration expenditure for a petroleum resource rent tax assessment.

    Next steps:

    • PCG 2016/13 Petroleum Resource Rent Tax – deductibility of general project expenditure
    • PSLA 2017/1 Income tax: deductions for mining and petroleum exploration expenditure

    See also:

      Last modified: 13 Nov 2017QC 53899