The Minister for Revenue and Assistant Treasurer and the Minister for Industry, Tourism and Resources announce that legislation implementing a number of changes to the Petroleum Resource Rent Tax Assessment Act 1987 has been introduced into Parliament today.
The Petroleum Resource Rent Tax Assessment Amendment Bill 2006 will reduce compliance costs, improve administration and remove inconsistencies in the petroleum resource rent tax (PRRT). The changes will improve the efficiency of the PRRT.
In particular, the amendments to the PRRT legislation:
- require the deduction of transferable exploration expenditure when calculating quarterly instalments;
- allow the deduction of closing-down costs when moving from a production to an infrastructure licence;
- allow taxpayers to self assess their PRRT liability;
- provide roll-over relief for internal corporate restructuring;
- allow the deduction of fringe benefits tax;
- introduce a transfer notice requirement for vendors disposing of an interest in a petroleum project;
- extend the lodgement period for PRRT annual returns from 42 days to 60 days; and
- make several minor technical amendments.
These changes will take effect from 1 July 2006.
The changes are consistent with the Government’s overall approach to taxation reform directed at simplifying Australia’s taxation system and making the Australian taxation system increasingly internationally competitive.