THE WEST AUSTRALIAN
14 February 2017
The WA Barnett Government has told a Federal review of the petroleum resource rent tax that its own royalty system is more economically efficient and transparent. The Treasury is looking into the PRRT after claims oil and gas companies were claiming excessive deductions under the regime.
The State Government’s submission said the ad valorem royalty regime used in WA had limits on deductibility and always provided a return to the community when production occurred.
“Hence they can be argued to be fairer than rent-based systems, such as the PRRT, where a considerable number of marginal projects will not make any return to the community,” the submission said.