Petroleum Resource Rent Tax (PRRT) has applied to offshore petroleum projects (except for the North West Shelf project and the Joint Petroleum Development Area) since 1987.
In 2012, the Federal Government extended the PRRT to all onshore petroleum projects and the North West Shelf project but not to the Joint Petroleum Development Area.
From 1 July 2019, onshore petroleum projects were removed from the scope of the PRRT. As a result, provisions that relate to initial amounts of starting base expenditure and the consolidation single entity rule were repealed.
PRRT is a tax generally on profits generated from the sale of marketable petroleum commodities such as:
- stabilised crude oil
- sales gas
- liquefied petroleum gas
- shale oil
Further information on the Petroleum Resource Rent Tax is available from the Australian Taxation Office website.