Petroleum resource rent tax
The Petroleum Resource Rent Tax Assessment Act 1987 imposes a secondary tax on the profits, above a compounded assumed rate of return from recovering petroleum in offshore areas under Commonwealth jurisdiction covered by the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
During the year two new taxpayers registered for petroleum resource rent tax, and two participating interests were transferred out, leaving the total number of registrants at 71.
We have identified several material risks, including claims for deductible expenditure, classification of expenditure and issues relating to derivation of assessable receipts. For details on litigation relating to these issues, see Appendix 5.
We continue to liaise with Treasury, the Department of Industry, the Australian Petroleum Production and Exploration Association and key taxpayers on petroleum resource rent tax issues and on the administrative impacts of new legislative measures.