PRRT concessions under the microscope ahead of May budget

ABC NEWS & 7.30
Andrew Probyn
20 Februrary 2017

Oil and gas companies could lose some of their generous tax deductions following a review of the Petroleum Resource Rent Tax (PRRT).

Amid concerns that revenue from the PRRT has flatlined at just over $800 million a year — less than half its peak of more than $2 billion in 2000-01 — there is new focus on the tax treatment of project costs.

Jason Ward from the Tax Justice Network said Australia was not getting a fair return for its resources.

"In fact, we're essentially giving them away free to the world's largest multinational corporations," Mr Ward said.

His organisation wants five offshore LNG projects slapped with a royalty in the same way the North West Shelf project and onshore gas projects are taxed.

"We estimate that that will bring in about $4 to $6 billion over the next four years."

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