The government is committed to ensuring that Australia’s taxes are working as intended and companies pay their fair share of tax.
In November 2016, the government announced an independent review into the operation of the PRRT, crude oil excise and associated Commonwealth royalties.
On April 28, 2017, we released the report of the review, which highlights improvements that can be made to the PRRT over the longer term.
The report does not recommend changes to the crude oil excise or Commonwealth royalty schemes and emphasises that care must be taken in making any changes to the PRRT framework, which could impact important projects that have made advanced plans based on existing arrangements. Sovereign risk and long term impact on investment are also a consideration when contemplating changes.
Accordingly, the government will now carefully examine the findings and recommendations of the report and provide a considered response in the next few months.
In considering the report, we will take into account the need to ensure that the PRRT provides an equitable return to the Australian community from the recovery of petroleum resources, without discouraging investment in exploration and development.
As part of responding to the report, the Treasurer has requested additional work be undertaken in considering reforms to the framework. An additional consultation period will be run until the end of August, and Treasury shall have until the end of September to report back to government.
A copy of the report is available at treasury.gov.au