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Instructions for PRRT notification of transfer of an interest in a petroleum title

Instructions for completing the PRRT notification of transfer of an interest in a petroleum title.

Last updated 24 June 2020

How to complete the petroleum resource rent tax (PRRT) notification of transfer of an interest in a petroleum title.

These instructions will help you complete the Petroleum resource rent tax (PRRT) notification of transfer of an interest in a petroleum title (PDF, 268KB)This link will download a file (NAT 15475).

An entity that transfers an interest in a petroleum title must provide this notification to the purchaser to notify the purchaser of the PRRT amounts that have been transferred to it.

All amounts on the notification need to be expressed in Australian dollars. Round down to whole-dollar amounts (don't include cents).

See also

If you need more help, phone us on 13 28 66, between 8.00am and 6.00pm, Monday to Friday.

Who should complete this notification

Any entity that enters into a transaction to transfer an entitlement to derive future assessable receipts from a petroleum title provides the Petroleum resource rent tax (PRRT) notification of transfer of an interest in a petroleum title (PDF, 268KB)This link will download a file (NAT 15475) to the purchaser.

The vendor must provide the notification to the purchaser within 60 days of the later of either:

  • entering into the transaction
  • the purchaser giving consideration for the entitlement and property.

The purchaser must provide a copy of the completed notification to us when it lodges a PRRT return for the transferred interest.

Section A: Vendor information

Section A of the form requires information about the vendor.

Questions 1–3 – Details about the vendor

Provide the following information:

  • the vendor's Australian business number (ABN) at question 1
  • the vendor's legal name at question 2
  • the PRRT registration number (if any) for the transferred interest at question 3.

Question 4 – Has the entity elected to be bound by the functional currency rules?

At question 4, indicate whether a choice to be bound by the functional currency rules was in place for the year of transfer.

  • If the entity has not elected to be bound by the functional currency rules for the year of transfer, place an X in the 'No' box and go to Section B.
  • If the entity has elected to be bound by the functional currency rules for the year of transfer, place an X in the 'Yes' box and go to question 5.

Question 5 – What is the functional currency translation rate?

At question 5, provide the exchange rate (rounded to four significant figures) used to translate amounts from the applicable functional currency into Australian dollars. The vendor needs to use the functional currency rate from the day of the transfer to translate amounts into Australian dollars.

The translation rate is the amount by which the functional currency amount is divided to reflect an equivalent amount of Australian dollars – that is, the number of non-Australian dollar currency units that equal one Australian dollar (rounded to four significant figures).

Question 6 – State the applicable functional currency code

At question 6, insert the functional currency code.

See also

Section B: Purchaser information

Section B of the form requires information about the purchaser.

Provide the following details:

  • the purchaser's ABN at question 7
  • the purchaser's legal name at question 8.

If the purchaser had an existing interest in the project before the transfer, provide the PRRT registration number for this project at question 9.

Section C: Details of transferred interest

Section C of the form requires details about the transferred interest.

Question 10 – Project name

At question 10, provide the project name (if any) for the transferred interest. If the transferred interest is an interest in:

  • the North West Shelf project, insert 'North West Shelf'
  • the Bass Strait project, insert 'Bass Strait'.

Question 11 – Details of the petroleum interest

At question 11, provide the petroleum interest details. If the interest relates to:

  • an exploration permit, place an X in the 'Exploration permit' box and insert the exploration permit number and date of issue
  • a retention lease, place an X in the 'Retention lease' box and insert the retention lease number and date of issue
  • a production licence, place an X in the 'Production licence' box and insert the production licence number and date of issue
  • a combined project with a combination certificate, place an X in the 'Combined project' box and insert the combination certificate number and date of issue.

If the interest relates to a combined project and there is no combination certificate number on the combination certificate, insert the first production licence number listed on the combination certificate and the date of issue of that production licence.

If the transferred interest is an interest in the North West Shelf project or Bass Strait project, leave the permit, lease, licence or combination certificate number and date of issue fields blank.

Section D: Details of transfer

Section D of the form requires details about the transfer.

Question 12 – Date of transfer

At question 12, provide the date of the transfer of the interest. The date of transfer is the date of contract, or a later date, as specified in the contractual documents.

Question 13 – Vendor's entitlement to petroleum from the project following the transfer

At question 13, provide the vendor's percentage entitlement to petroleum from the project following the transfer. If the vendor no longer has any interest in the project following the transfer, place a 0 (zero) in each box.

If the entitlement cannot accurately be described as a percentage, insert details in the free-text field.

Question 14 – Entitlement to petroleum from the project transferred to the purchaser

At question 14, provide the percentage entitlement to petroleum from the project that has been transferred to the purchaser.

If the entitlement cannot accurately be described as a percentage, insert the details in the free-text field.

Section E: Amounts transferred to the purchaser

Section E of the form requires details of the amounts transferred to the purchaser.

Upon entering into a transaction to transfer an interest in a petroleum title, the purchaser is deemed to have derived the receipts and incurred the expenditure previously derived or incurred by the vendor to the extent of the transfer of interest. For example, if the vendor transfers 25% of its total entitlement from the project, 25% of the assessable receipts and deductible expenditure will be transferred to the purchaser.

The purchaser is only entitled to the receipts and expenditure that have not already been returned or claimed by the vendor to work out any liability for PRRT. In other words, assessable receipts and deductible expenditure that were taken into consideration in working out the PRRT payable in an earlier year or exploration expenditure that was transferred to another project cannot be transferred to the purchaser.

The purchaser will also be taken to be liable for any unpaid PRRT amounts and to have paid any amounts of PRRT paid by the vendor, to the extent of the transfer of interest, in respect of instalments of tax during the year in which the transfer of the entitlement was made.

Question 15 – Provide details of the undeducted expenditure the purchaser will be taken to have incurred for each relevant year

At Question 15, provide details of the undeducted expenditure the purchaser will be taken to have incurred for all years up to and including the transfer year.

Undeducted expenditure is the expenditure that has not been applied against the assessable receipts of any project or been transferred to another project.

Type of expenditure (actual incurred)

Insert the year for the period ending 30 June for each year in which the purchaser will be taken to have incurred the expenditure. Then insert all of the following for each applicable year:

  • actual undeducted exploration expenditure incurred
  • actual undeducted general project expenditure incurred
  • actual undeducted resource tax expenditure incurred.

Do not augment these amounts.

If there are more than three years of undeducted expenditure, insert a separate attachment and include the information requested at question 15 for actual incurred expenditure for each year.

Type of expenditure (augmented)

The purchaser is taken to have incurred any applicable starting base expenditure on the first day (1 July) of the year of transfer. Insert the year for the period beginning 1 July in which the transfer occurred. Then insert the augmented amount of starting base expenditure.

Question 16 – Provide details of the assessable receipts the purchaser will be taken to have derived in the year of transfer

At question 16, provide details of all the assessable receipts that the purchaser will be taken to have derived in the year of transfer. Insert:

  • at label 16A, the amount of assessable petroleum receipts
  • at label 16B, the amount of assessable tolling receipts
  • at label 16C, the amount of assessable exploration recovery receipts
  • at label 16D, the amount of assessable property receipts
  • at label 16E, the amount of assessable miscellaneous compensation receipts
  • at label 16F, the amount of assessable employee amenities receipts
  • at label 16G, the amount of assessable incidental production receipts
  • at label 16H, the total of all the assessable receipts taken to have been derived by the purchaser during the year (16A 16B 16C 16D 16E 16F 16G).

Question 17 – Provide details of the amounts of instalments of PRRT that will be taken to have been paid by the purchaser

At question 17, provide details of the amounts of instalments of PRRT that the purchaser will be taken to have paid during the year of transfer. Insert the instalment amounts paid in the first, second and third instalment periods (as applicable) and the date each instalment amount was paid.

An amount of an instalment is only taken to have been paid by the purchaser if it has been paid by the vendor. If an amount has not been paid by the vendor, do not include it.

Section F: Declaration

Section F of the form is the entity's declaration.

An authorised person or authorised tax agent must sign the declaration on behalf of the entity. The authorised person is generally the person the entity nominated on its Application to register for petroleum resource rent tax (PRRT) (NAT 9847) for the project. If you need to change the authorised contact person, phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday, or complete a Change of registration form (NAT 2943), available from Update your details.

Insert all details of the authorised person:

  • the full name of the signatory
  • the position held
  • the business phone number.

Read the information at 'Before you sign this form'. If you consent to the declaration, include your signature and the date of signing at the bottom of the notification.

The declaration needs to be signed in pen; otherwise, the notification cannot be recorded as lodged when we receive it.

How to lodge

The vendor should make a copy of this notification and any attachments for its own records before giving it to the purchaser.

The purchaser should make a copy of this notification and any attachments for its own records and mail it with its first PRRT return for the transferred interest to:

Australian Taxation Office
PO Box 3130
PENRITH NSW 2740

Note: There may be a delay in processing forms if the entity has not registered this project for PRRT. To register, complete an Application to register for petroleum resource rent tax (PRRT) (NAT 9847).

Record keeping

The vendor should keep a copy of the notification and the records used to prepare it for seven years after they are prepared.

The purchaser should keep a copy of the notification and the records used to prepare it for seven years from when a copy of the notification is lodged with the ATO.

The records should be in English, or readily accessible and easily convertible into English.

See also

QC56559