The ATO has reminded leviable entities to report petroleum production and lodge their Offshore Petroleum Levy returns for 2025–26 by 31 December 2026, with payments due within 21 days of assessment.
The Australian Taxation Office (ATO) has issued a notice on 21 September 2026 reminding leviable entities to report petroleum production and submit the Offshore Petroleum (OP) Levy return for the 2025–26 financial year.
The deadline for lodgment is 31 December 2026.
The levy itself covers costs of decommissioning and remediating the Laminaria and Corallina oil fields, along with their associated infrastructure.
Filing requirements and deadlines
Leviable entities must complete the OP Levy return form and submit it online through the Online services for business platform. The ATO accepts returns via Communication and Secure Mail. Entities select Petroleum Resource Rent Tax from the topic list, then choose General enquiries before attaching the completed form.
Once all returns are lodged, the ATO calculates the total levy payable per entity and issues a notice of assessment. Payment becomes due within 21 days of the assessment notice. Late payments incur a general interest charge.
Extensions and support
Entities unable to meet the lodgment or payment deadline may request an extension by contacting [email protected]. The ATO grants extensions in certain circumstances.
Entities must retain completed returns and supporting records for at least five years from the lodgment date.
Alternative lodgment methods are available for those unable to submit online.
Australia introduced the Offshore Petroleum Levy to recover Commonwealth costs associated with decommissioning and remediating the Laminaria and Corallina oil fields and related infrastructure. The levy applies to registered petroleum production licence holders from 1 July 2021 and is intended to run for 12-month periods through 1 July 2029, unless terminated earlier once costs are recovered. The levy is not tax-deductible against other forms of taxation.
