AUSTRALIAN FINANCIAL REVIEW
13 March 2017
An international expert says the exploration incentives that Australia offers to oil and gas companies are "excessive", as analysis by Citi shows a 10 per cent royalty would generate $3.96 billion over the next five years.
University of Calgary economist Jack Mintz, who is in Australia as a guest of the Minerals Council, said the petroleum resource rent tax (PRRT) was too generous. It is under review following a halving of revenue to about $800 million a year.
"In our numbers Australia's tax treatment of oil and gas is the lowest effective rate [compared] with all the major countries including Canada," he said. "I do think there is value to reforming the PRRT, keeping in mind you have to be very careful with transition."