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Apportionment of PRRT deductible expenditure

How to apportion a payment under the PRRT law to work out the extent that it is deductible expenditure.

Last updated 17 June 2020

The Petroleum Resource Rent Tax Assessment Act 1987 (PRRTAA) allows for a payment to be apportioned. This is to the extent to which it is made in carrying on or providing the operations, facilities and other things in relation to a petroleum project (project activities).

This information provides an overview of:

  • when an entity may need to apportion a payment in order to work out the extent to which it is deductible expenditure
  • practices that may help an entity apportion its payments
  • record-keeping obligations, including business records that may be sufficient to meet the substantiation requirements for PRRT purposes.

See also:

Apportionment of payments

When payment may need to be apportioned and how to choose a reasonable base of apportionment.

Apportionment practices

Practices that may help an entity apportion a payment.

Record keeping

What records you need to keep as evidence of the apportionment or substantiation of deductible expenditure

Examples of apportionment

See examples of apportionment of PRRT deductible expenditure.

QC37839