The petroleum resource rent tax (PRRT) taxes profits generated from the sale of marketable petroleum commodities above a specified rate of return. PRRT is paid when a petroleum project’s total assessable receipts exceed total eligible expenditure.
Total petroleum resource rent tax payable
There are 11 entities in the 2021–22 PRRT transparency population, with total PRRT payable of $1,997.6 million. The number of entities paying PRRT increased from 10 in the previous year, and PRRT payable increased from $926.0 million.
The increase in PRRT payable reflects the increased profitability of PRRT-liable companies in 2021–22, with oil prices being a key driver – see World Bank commodity prices dataExternal Link.
Figure 15 shows the number of PRRT entities since the CTT report commenced publication.
Figure 15: Number of PRRT entities over 9 years
Figure 16 below demonstrates that the annual PRRT collections are highly correlated to the price of oil. However, the results must also be read against developments in the global energy market. For instance, the 2020–21 result reflects energy prices recovering from a 2020 contraction, particularly for oil. The 2021–22 result is primarily attributed to energy price prices reacting to market volatility created by the Russian invasion of Ukraine.
Figure 16: PRRT payable versus oil price over 9 years