25 February 2017
Australian taxpayers will be forced to subsidise the clean-up costs of oil spills in the Great Australian Bight thanks to the terms of the controversial petroleum resource rent tax.
Treasury officials have confirmed that oil companies would be able to claim a tax deduction under the PRRT for expenses incurred cleaning up oil spills.
Different “uplift rates” would apply to clean-up costs depending on whether the spills resulted from exploration or production activity.
It means the costs of cleaning up oil spills from exploration wells would be tax deductible, and could be held over and “uplifted” into future years at an annual rate of 17.5%.