Excluded expenditure

Certain expenditure is specifically excluded from being deductible for PRRT. This is referred to as excluded expenditure, and includes the following:

  • interest and principal repayments on borrowings
  • interest components of hire-purchase payments
  • dividend payments
  • share issue costs
  • private override royalties (other than certain eligible native title payments)
  • equity capital repayments
  • payments to acquire (other than by grant) an interest in an exploration permit, retention lease, production licence, pipeline licence or access authority
  • payments to acquire interests in petroleum project profits, receipts or expenditures
  • income tax and goods and services tax payments
  • indirectly incurred administrative or accounting costs, salary, wages or other work costs
  • payments for land and buildings used for administrative or accounting purposes if the land or buildings are not located at, or adjacent to, the project site.
    Last modified: 30 Jan 2014QC 26133