When is PRRT payable
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 PRRT payable
There are 11 entities in the 2022–23 PRRT transparency population, with total PRRT payable of $1,867.1 million. The number of entities paying PRRT remained steady on the previous year, and PRRT payable decreased from $1,996.6 million in 2021–22.
The decrease in PRRT payable reflects the lower profitability of PRRT-liable companies in 2022–23, with oil prices being a key driver – see World Bank commodity prices dataExternal Link.
Figure 15 shows the number of PRRT entities over 10 years since the Corporate tax transparency report commenced publication.
Figure 15: Number of entities that paid PRRT over 10 years
Figure 16 below demonstrates that the annual PRRT collections are highly correlated to the price of oil. The oil price is sensitive to developments in the global energy market. For instance, the 2021–22 result is primarily attributed to energy prices reacting to market volatility created by the Russian invasion of Ukraine. The 2022−23 results have fallen as COVID-19 restrictions in China and higher energy prices resulted in oil demand declining.
Figure 16: PRRT payable versus oil price over 10 years