Australia’s Treasurer Jim Chalmers announced new Petroleum Resource Rent Tax regulations on 6 August, 2024.
The Petroleum Resource Rent Tax (PRRT) reform aims to deliver a fairer return to the Australian community from their natural resources. The comparable uncontrolled price (CUP) rules have also been updated to align with current OECD guidelines, and the advanced pricing arrangement (APA) rules have been modified.
These changes mean the offshore LNG industry pays more tax, sooner, provides industry and investors policy certainty to allow the sufficient supply of domestic gas, and ensure Australia remains a reliable international energy supplier and investment partner.
The new PRRT Regulations respond to recommendations from the Treasury Gas Transfer Pricing Review by modernising the rules to cover the new business model of tolling and increasing the integrity of the rules.
The Government’s PRRT reforms are expected to increase tax receipts by $2.4 billion over the forward estimates from 2023–24.
The Government will continue to monitor the operational aspects of the PRRT and address any integrity issues that emerge.
Consultation on exposure draft legislation to implement outstanding recommendations of the Callaghan Review will occur in due course.
The revised guidelines will take effect for tax years starting on or after 1 July, 2024.
