Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. Josh Frydenberg MP)General outline and financial impact
Uplift rates for carried-forward expenditure
Schedule 1 to the Bill amends the Act to reduce the uplift rates that apply to certain categories of carried-forward expenditure.
Date of effect: 1 July 2019.
Proposal announced: Schedule 1 partially implements the measures announced by the Treasurer on 2 November 2018.
Financial impact: The Bill is estimated to have an unquantifiable gain to revenue over the forward estimates period and a $6.0 billion net gain to revenue over the medium-term (to the 2028-29 financial year).
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3, paragraphs 3.1 to 3.5.
Compliance cost impact: Low. For further information, please refer to the Final Report of the Review of the Petroleum Resource Rent Tax, which is available on the Treasury website: treasury.gov.au/review/review-of-the-petroleum-resource-rent-tax/final-report/
Onshore petroleum projects
Schedule 2 to the Bill amends the Act to remove onshore petroleum projects from the scope of the PRRT. Onshore petroleum projects are generally not expected to result in PRRT liabilities but can reduce taxpayers' PRRT liabilities for offshore projects because of the transfer of exploration expenditure.
Date of effect: 1 July 2019.
Proposal announced: Schedule 2 partially implements the measures announced by the Treasurer on 2 November 2018.
Financial impact: The Bill is estimated to have an unquantifiable gain to revenue over the forward estimates period and a $6.0 billion net gain to revenue over the medium term (to the 2028 29 financial year).
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3, paragraphs 3.1 to 3.5.
Compliance cost impact: Low. For further information, please refer to the Final Report of the Review of the Petroleum Resource Rent Tax, which is available on the Treasury website: treasury.gov.au/review/review-of-the-petroleum-resource-rent-tax/final-report/