Who is affected
PRRT affects any entity that has an interest in either:
- an offshore exploration permit, retention lease or production licence
- the North West Shelf project
- the Bass Strait project.
Joint venture partners have individual responsibilities and contractors normally do not have PRRT responsibilities.
An entity holds an interest in, or in relation to, an exploration permit, retention lease or production licence if it is, or will be, entitled to receipts from the sale of either:
- petroleum recovered from the project area
- marketable petroleum commodities (MPCs) produced from that petroleum.
An entity with an interest in a production licence may have lodgment obligations, including:
- lodging instalment statements and paying PRRT instalments
- paying PRRT and lodging PRRT returns
- notifying us of certain choices.
Entities that hold an interest in an exploration permit or a retention lease are encouraged to register for PRRT. Registration allows us to send entities timely information on PRRT and ensures that forms and payments (including refunds) are processed promptly.
See also:
Exploration permits and retention leases
For PRRT purposes, an entity has an interest in an exploration permit or retention lease if it will be entitled to receive receipts from the sale of either:
- petroleum recovered from the permit or lease area
- MPCs produced from that petroleum.
An exploration permit or retention lease is not a petroleum project under PRRT. An entity is not required to lodge PRRT instalment statements or returns in relation to them. It will become a petroleum project for PRRT purposes when a production licence comes into force.
An entity should keep records of any assessable receipts and deductible expenditure relating to its interest. These records will assist in determining its PRRT liability for any petroleum projects that eventuate from these permits or leases.
Production licences
For PRRT purposes, an entity holds an interest in, or in relation to, a petroleum project if it is entitled to receive receipts from the sale of either:
- petroleum recovered from the production licence area
- MPCs produced from that petroleum.
If an entity has no assessable receipts derived, that entity generally does not have a PRRT liability or any reporting obligations until it begins to derive assessable receipts in relation to the production licence. It will, however, need to keep relevant records.
Entities deriving assessable receipts
Once a petroleum project begins deriving assessable receipts from the sale of petroleum, an entity with an interest in the project generally has obligations under PRRT. It may need to register for PRRT and lodge PRRT instalment statements and PRRT returns.
PRRT applies on a project basis. Therefore, an entity needs to lodge separate PRRT instalment statements and PRRT returns for each project it has an interest in.
Combining PRRT projects
An entity that holds an interest in two or more petroleum projects can apply to have them combined and treated as a single project for PRRT purposes, provided certain criteria are met. Applications are made to the Resources Minister and a qualifying period applies.
An interest in the North West shelf project cannot be combined with another project.
Joint venture participants
An entity with an interest in a project operating under a joint venture arrangement is required to meet PRRT obligations in the same manner as an entity with an interest in a non-joint venture operation. That is, each joint venture participant has separate obligations for their interest in the project. They cannot combine their PRRT obligations, such as registering for PRRT and lodging PRRT returns.
For example, if there are two joint venture participants in a project, they would both register separately for PRRT and would also lodge separate instalment statements and PRRT returns.
Contractors
Contractors are generally paid for their services and they have no entitlement to the resources or receipts from the sale of petroleum recovered from the petroleum project. Unless a contractor has an interest in an exploration permit, retention lease or production licence, they are not subject to PRRT.
Register for PRRT
Registering for PRRT allows us to send entities timely information on PRRT and also ensures that forms and payments (including refunds) are processed promptly.
We will issue a registered entity with a unique payment reference number (PRN) to enable it to pay electronically.
An entity should consider registering for PRRT and providing up-to-date contact details if it has an interest in any of the following:
- an offshore exploration permit
- an offshore retention lease
- an offshore production licence
- an offshore combined project
- the North West Shelf project
- the Bass Strait project.
An entity with an interest in more than one project needs to register separately for each petroleum interest.
Next step:
More information
We are committed to helping entities understand and meet any PRRT obligations they may have. If an entity requires information, guidance or advice, it can contact us by phone or in writing.
You can contact us by:
- phone to 13 28 66 between 8.00am and 6.00pm, Monday to Friday
- writing to
Australian Taxation Office
PO Box 3000
PENRITH NSW 2740 - email to PRRT@ato.gov.auThis link opens in a new window
- fax to 1300 139 011.