The Albanese Government will consult on the next component of regulations to improve the certainty and integrity of the Petroleum Resource Rent Tax regime, as recommended in the Gas Transfer Pricing Review and announced in the 2023-24 Budget.
Our changes to the PRRT will mean the offshore LNG industry pays more tax sooner, will provide industry and investors policy certainty to allow the sufficient supply of domestic gas, and will ensure Australia remains a reliable international energy supplier and investment partner.
The petroleum industry makes an important contribution to the economy including through investment, jobs, energy supply and corporate and other taxes, and these changes will ensure this continues.
The regulations we're consulting on from today include clarifications of the existing rules used by projects to value sales gas that is converted into liquefied natural gas (LNG).
Additional measures in the regulations will ensure taxable profits from projects are accounted for appropriately. These include measures that improve the integrity of asset life calculations, remove asymmetry in the current rules, and clarify the treatment of LNG facilities first entering the PRRT regime.
Draft regulations for consultation and feedback are available on Treasury's website until April 2024.
The Government will consult on draft legislation implementing the remaining elements of its response to the Gas Transfer Pricing Review later in 2024, focusing on improving the administration of the PRRT.
The Albanese Government is committed to working with our international trade and investment partners on energy security and providing greater policy certainty for investors.
Our changes to the PRRT will support our budget repair efforts, fund the delivery of vital services that Australians rely on, and help build a stronger, fairer and more resilient economy.
