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  • Instructions for notification of PRRT instalment transfer interest charge

    Instructions for completing the notification of petroleum resource rent tax (PRRT) instalment transfer interest charge.

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    Read these instructions before completing the Notification of PRRT instalment transfer interest charge (NAT 16121).

    Complete a separate notification of PRRT instalment transfer interest charge for the entity's interest in each petroleum project for which an instalment transfer interest charge has arisen.

    All amounts on the notification of PRRT instalment transfer interest charge need to be expressed in Australian dollars. Round down to whole-dollar amounts (do not include cents).

    If a choice to be bound by the functional currency rules was in place for the year of tax, use the same functional currency translation rate to translate the relevant amounts into Australian dollars for the notification as the rate used in the relevant PRRT instalment statement.

    For more information you can:

    The year of tax for PRRT begins on 1 July and ends on 30 June the following year. Insert the relevant financial years to signify the start and the end of the year of tax.

    Section A: Entity information

    At question 1, insert the entity’s Australian business number (ABN). At question 2, insert the entity's tax file number (TFN) to help us correctly identify the entity (you don’t have to provide this information). At question 3, insert the entity's legal name. This information allows us to correctly identify the entity lodging the return.

    Provide the PRRT registration number for the entity's interest in the petroleum project at question 4.

    Section B: Calculation of the instalment transfer interest charge

    An instalment transfer excess is an amount of exploration expenditure that was either transferred by:

    • the entity to the entity's interest in the petroleum project in an instalment period but the entity is no longer entitled to transfer to the project at the year end because the common ownership test cannot be met
    • a group company to the entity's interest in the petroleum project but can no longer be transferred at the year end because the common ownership test cannot be met.

    An offset amount is applied to reduce the instalment transfer excess. The offset amount is either any amount of:

    • the instalment transfer excess that is otherwise transferred by the entity to another project at the year end
    • other transferable exploration expenditure that is transferred to the project because the original amount cannot be transferred.

    The entity will be liable for an instalment transfer interest charge on the net amount.

    The entity may remain liable for the full amount of the charge even if it disposed of all or part of its interest in the petroleum project.

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    Question 5 Information for calculation of the instalment transfer interest charge

    For each instalment period, insert at:

    • label A the total instalment transfer excess amount (if any)
    • label B the total offset amount applied (if any)
    • label C the net amount (if any) – that is, the total instalment transfer excess amount less any total offset amount (A - B).

    Section C: Request for remission of the instalment transfer interest charge

    We may remit all, or part, of the instalment transfer interest charge if it is considered fair and reasonable to do so.

    If you want to request remission of the whole, or part, of the instalment transfer interest charge, provide the grounds for remission in the free text field provided.

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    Administrative approach to PRRT

    Section D: 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 8:00 am and 6:00 pm, Monday to Friday, or complete a Change of registration details (NAT 2943).

    If the person signing the declaration is a registered tax agent that is a partnership or a company, the declaration must be signed by a person authorised by that partnership or company to sign on its behalf.

    Insert all details of the authorised person:

    • the full name of the signatory
    • the position held
    • registered tax agent number (if applicable)
    • the business phone number.

    Read the information at 'Before you sign this form' and 'Privacy'. If you consent to the declaration, place an X at the appropriate declaration statement and include your signature and the date of signing.

    The declaration needs to be signed in pen otherwise we cannot be record the notice as lodged when we receive it.

    When to lodge and pay

    The due date for lodging the entity's notification of PRRT instalment transfer interest charge is 29 August following the end of the year of tax for which you are lodging. Lodging the entity's notification with the PRRT return for the project will assist with prompt processing of the return and notification.

    You need to lodge your notice by mail, therefore make sure you post it in time for us to receive it by the due date to avoid penalties.

    The ATO will calculate the amount of the interest charge and provide the entity with a notice stating the amount of the instalment transfer interest charge liability. The notice provided will include details about how and when to pay.

    What if you can't lodge on time?

    Phone us on 13 28 66 between 8:00 am and 6:00 pm, Monday to Friday, to check whether alternative arrangements can be made. A penalty may be applied if the entity fails to lodge on time.

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    Administrative approach to PRRT

    How to lodge

    Make a copy of this notification for your own records before you mail it to:

    Australian Taxation Office
    PO Box 3130
    PENRITH NSW 2740

    Get it done

    There may be a delay in processing forms and payments (including refunds) 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

    You should keep a copy of the notification of PRRT instalment transfer interest charge and the records used to prepare it for at least seven years from the date of lodgment. The records should be in writing and in English, or readily accessible and easily convertible into English.

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    Last modified: 08 Mar 2013QC 56565