PRRT starting base

The starting base is designed to recognise the value of investments in onshore petroleum projects, exploration permits, retention leases and interests in the North West Shelf project (petroleum interests) that are transitioning into the petroleum resource rent tax (PRRT) regime as a result of the extension of the PRRT.


Starting base does not apply to interests in offshore petroleum projects, exploration permits and retention leases, or to interests in the Bass Strait project.

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An entity that holds a petroleum interest that existed before 2 May 2010 can choose the book value or market value approach to work out a starting base amount that will be deductible against its PRRT assessable receipts.

Alternatively, an entity can choose the look-back approach, which allows certain expenditure incurred before the extension of PRRT to be taken into account in working out its PRRT liability.

An entity chooses which valuation approach to apply for each petroleum interest it has – it can choose to apply one approach to its interest in one petroleum interest, and a different approach to its interest in another petroleum interest.

If an onshore petroleum right, from which a petroleum project is to be derived, comes into existence on or after 2 May 2010, but before 30 June 2012, an entity will not receive a starting base amount. However, it may be able to deduct certain expenditure incurred from the date the right came into existence until 30 June 2012.

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    Last modified: 14 May 2014QC 26152