Deductions cap lodgments and payments
The petroleum resource rent tax (PRRT) deductions cap applies from 1 July 2023.
If you're subject to the PRRT deductions cap, you may be in a PRRT payable position for the first time and finding it difficult to calculate your liability within the statutory timeframes.
If you haven't already been given an extension to your lodgment date, you can apply to us for a lodgment deferral for PRRT returns and instalment statements. The process for seeking a lodgment deferral hasn't changed.
We can't defer due dates for PRRT payments. Where a PRRT lodgment is deferred, you still need to make payment by the due date.
We won't seek to apply penalties, and will remit interest charges where you have used a reasonable basis and best efforts to determine your PRRT liability and made the corresponding PRRT payment.
However, if there is a large or material difference between the PRRT paid and the final PRRT liability, we may seek to understand the reasons for the difference.
PRRT regulations
The PRRT 2024 regulations were registered on 6 August on the Federal Register of LegislationExternal Link.
These new regulations respond to recommendations from the Treasury Gas Transfer Pricing review. They include changes to better accommodate commercial tolling arrangements and enhance the integrity rules.
PRRT anti-avoidance rules and PRRT exploration for petroleum
PRRT anti-avoidance rules and PRRT exploration for petroleum are now law after Parliament enacted the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024External Link.
PRRT anti-avoidance rules now align with the general anti-avoidance provisions in Part IVA of the Income Tax Assessment Act 1936 (ITAA 1936) with effect from 1 July 2023.
Parliament has clarified the phrase 'exploration for petroleum' for PRRT purposes is limited to the ‘discovery and identification of the existence, extent and nature of the petroleum resource’. This change is effective from 21 August 2013.
Contact us if you have any questions prrt@ato.gov.au.
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