ITF Briefing Paper 1
Australia’s oil and gas industry carried forward $156 billion in PRRT credits into the 2014/15 financial year. PRRT is the primary federal tax collected by the Australian Tax Office (ATO) on all oil and gas production. The PRRT is supposed to collect 40% of a project’s taxable profit, but appears to have become rife with loopholes, exemptions and deductions that limit the tax collected.
Despite the pending boom in liquefied natural gas (LNG) production and the forecast for Australia to be the largest LNG exporter in the world by 2020, the chief economist at Goldman Sach’s expects that “Australia’s LNG sector will deliver no additional PRRT revenues over the coming decade....”