PRRT too 'generous', says expert

AUSTRALIAN FINANCIAL REVIEW
Joanna Mather
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." 

> Read more: http://www.afr.com/news/policy/tax/prrt-too-generous-says-expert-20170313-guwrxi