Friday, 14 December 2012 15:20
The peak national body for the upstream oil and gas industry has welcomed the move by the Federal Government to make several technical amendments to the petroleum resource rent tax (PRRT), after the full federal court judgement passed earlier this year left considerable confusion about the tax in its wake.
The Australian Petroleum Production and Exploration Association (APPEA) said the decision of the court had the real potential to impact on all companies operating under the PRRT regime, which has provided a stable fiscal footing for the industry since it was first applied in the mid 1980s.
The PRRT applies to all petroleum projects in offshore areas, or Commonwealth adjacent areas, under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 other than production licences derived from the North West Shelf exploration permits WA-P-1 and WA-P-28.
“The commitment of Australian and global oil and gas companies to invest billions of dollars in capital has provided important support for the Australian economy in meeting the economic challenges of the global financial crisis,” APPEA CEO David Byers said.
“The government and industry have worked together to remove the potential threat to such investments and the associated employment of tens of thousands of Australians as a result of the uncertainty arising from the court decision.
“The discussions that have taken place with the government and the Australian Taxation Office since the court decision were integral in identifying a number of modifications needed to maintain the regimes original intent and provide a practical outcome for companies and tax administrators.
“While the final details of the legislative modifications will need to be finalised over the coming weeks, APPEA is confident there is now a clear pathway forward to removing the uncertainty.”
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