These instructions will help you complete the Petroleum resource rent tax (PRRT) deductible expenditure schedule (NAT 74264), which must be lodged when an entity lodges its first PRRT return.
A separate schedule is required for the entity's interest in each petroleum project.
The year of tax for PRRT begins on 1 July and ends on 30 June the following year. On page 1 of the form, insert the relevant years to signify the start and the end of the year of tax.
All amounts on the PRRT deductible expenditure schedule must be expressed in Australian dollars. Round down to whole-dollar amounts (don't include cents).
If you need more help, phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday.
Section A requires information about the entity and the project.
Questions 1–3 – Details about the entity
Provide the following information:
- the entity's Australian business number (ABN) at question 1
- the entity's tax file number (TFN) at question 2 (while this is optional, it allows us to correctly identify the entity lodging the schedule)
- the entity's legal name at question 3.
Question 4 – Does the project have a PRRT registration number?
At question 4, indicate whether there is a PRRT registration number for the project by placing an X in the appropriate box.
If you answer 'Yes', insert the PRRT registration number in the space provided.
If you answer 'No', provide the name of the petroleum project. If the interest in the petroleum project is an interest in:
- a production licence, place an X in the 'Production licence' box and insert the production licence number in the 'Production licence or combination certificate number' box
- a combined project, place an X in the 'Combined project' box and insert the combination certificate number in the 'Production licence or combination certificate number' box.
If there is no combination certificate number on the combination certificate, insert the first production licence number listed on the combination certificate.
Section B requires details of deductible expenditure incurred.
Complete one column of section B for each year in which the entity has any of the following:
- incurred deductible expenditure
- transferred exploration expenditure
- derived assessable receipts.
If the entity has had any of the above in more than four years, complete and attach as many section Bs as necessary to provide information on all years in which any of the above occurred. At the top of each page at 'Section B number', insert:
- the number of each section B in the first set of boxes, and
- the total number of completed section Bs in the second set of boxes.
At Year in which expenditure was first incurred, insert the year (ending 30 June) in which expenditure was first incurred by the entity in relation to the petroleum project. This can be the year in which expenditure was first incurred for the exploration permit or retention lease from which the petroleum project originated, if that expenditure was incurred by the entity lodging this schedule.
For each later year in which deductible expenditure was incurred, insert the year of tax (ending 30 June) in the boxes provided at Type of expenditure and complete labels A to H, as applicable, up to and including the year in which the entity is lodging its first PRRT return for the petroleum project.
If the entity acquired the interest in the project from another entity (or entities), only insert details of the expenditure the entity incurred following the transfer. Attach to this schedule all Petroleum resource rent tax (PRRT) notification of transfer of an interest in a petroleum title (NAT 15475) forms provided by the vendor (or vendors) at the time of the transfer of the interest in the exploration permit, retention lease, petroleum project or combined project.
In the boxes provided, insert the year (ending 30 June) in which expenditure was incurred for the project.
- At label A, insert the total amount of class 2 uplifted general expenditure (if any) incurred during the year to which the column relates. Note: Prior to 1 July 2019, this was known as the class 2 augmented bond rate general expenditure.
- At label B, insert the total amount of class 1 GDP factor expenditure (if any) incurred during the year to which the column relates.
- At label C, insert the total amount of class 2 uplifted exploration expenditure (if any) incurred during the year to which the column relates. Note: Prior to 1 July 2019, this was known as the class 2 augmented bond rate exploration expenditure.
- At label D, insert the total amount of class 2 GDP factor expenditure (if any) incurred during the year to which the column relates.
- At label F, insert the total amount of expenditure incurred during the year to which the column relates. This is calculated by adding together all deductible expenditure amounts for the project for the relevant year (A + B + C + D).
- At label G, insert the total amount of exploration expenditure transferred to other petroleum projects (if any) during the year to which the column relates.
- At label H, insert the total assessable receipts (if any) derived during the year to which the column relates.
Section C of the form is the entity' 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 8.00am and 6.00pm, Monday to Friday, or complete a Change of registration details form (NAT 2943), available from Update your details.
If the person signing the declaration is an authorised tax agent which 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 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 at the bottom of the schedule.
The declaration needs to be signed in pen; otherwise, the schedule cannot be recorded as lodged when we receive it.
The entity's PRRT deductible expenditure schedule must be lodged with the entity's PRRT return by 29 August following the end of the year of tax for which you are lodging. A penalty may be applied if you fail to lodge on time.
If you do not lodge this schedule with the entity's PRRT return, the schedule may be taken to have been not lodged.
- Instructions for PRRT return – includes information on correcting mistakes and on record-keeping requirements