KPMG’s Ben Opie discusses the Federal Government’s proposed reforms to the Petroleum Resources Rent Tax (PRRT) regime and what it may mean for those companies operating in the oil and gas business.
Significant reforms proposed to the Petroleum Resources Rent Tax (PRRT) regime will require oil and gas companies to closely scrutinise impacts on current and future project expenditure.
Details of the Federal Government’s plans were included as part of its response to the review of the PRRT by Mike Callaghan, which was released in April 2017.
Although supportive of the PRRT, the review made 12 recommendations which it said would balance revenue and investment concerns.
The proposed changes, announced by Treasurer Josh Frydenberg on 2 November, are forecast to generate an additional $6 billion in revenue over the next ten years.
To continue reading this article, please log in or register for KPMG Tax Now.