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. Learn more about the Petroleum resource rent tax.
There are 10 entities in the 2020–21 PRRT transparency population, with total PRRT payable of $926 million. The number of entities paying PRRT decreased from 12 in the previous year, and PRRT payable increased from $881.1 million.
The increase in PRRT payable reflects the increased profitability of PRRT liable companies in 2020–21, with oil prices being a key driver, see World Bank commodity prices dataExternal Link.
Figure 15a: Number of PRRT entities over the past 5 years
Figure 15b: PRRT payable versus oil price over the past 5 years.
Figure 15b below demonstrates that PRRT paid each year is highly correlated to the oil price over the 5-year period.