The peak body representing Australia’s oil and gas industry noted the release today of exposure draft legislation by the Federal Government in relation to the 2010 decision to extend the petroleum resource rent tax (PRRT) to cover all petroleum production in Australia.
The Australian Petroleum Production & Exploration Association (APPEA) Chief Executive, Belinda Robinson, said: “The draft legislation will allow the industry to better assess the potential impacts of the decision to extend the PRRT’s scope.
“The complexities associated with implementing the Government’s decision are demonstrated by the length and detail of the amendments that will be required to modify the existing law.
“It is critical that the existing principles that underpin the PRRT regime are maintained, and the different operational and commercial parameters that confront onshore operations, including coal seam gas, are adequately addressed.
“The Government must also ensure that onerous and inefficient administrative burdens are not placed on the many small companies operating in Australia’s onshore oil and gas sector.
“For many companies, their experience of the Australian Taxation Office’s administration of the PRRT to date has been one of uncertainty because of a failure to recognise the practicalities of how the industry goes about its business. These problems should not merely be transposed onto many new taxpayers.
“APPEA will be carefully reviewing the legislation during the consultation period and, where necessary, recommending changes to ensure that the regime operates as originally intended.”
APPEA: Exposure draft petroleum resource rent tax legislation provides some clarity