The first tranche of changes to the petroleum resource rent tax (PRRT) was passed by Federal Parliament on 3 April 2019.
The changes exclude the onshore industry from the scope of the tax and modify the carry forward rates for certain categories of exploration and general project expenditure. The changes effectively apply from 1 July 2019.
The changes follow the government’s announcement in late 2018 that indicated a series of changes would be made to the tax. The recent changes are likely to be the first of three packages of reforms.
The second set of changes relate to a number of technical enhancements to the operation of the tax, while the third will cover the operation of the gas transfer price.
Details on the 2018 government announcement can be found here.
A discussion paper has also been released for public comment on the operation of the gas transfer price – details can be found here.