The Australia Institute welcomes the opportunity to make a submission to Treasury’s Review of the Petroleum Resource Rent Tax (PRRT). The review occurs at a time when Australia is set to become the world’s largest gas exporter, yet PRRT revenues are declining. Several major gas projects are unlikely to pay PRRT for decades, according to many analysts, including analysis commissioned by the industry lobby group, APPEA.
The review aims to provide advice on whether the PRRT is operating “as intended”. In the current situation with projects unlikely to pay PRRT for many years if ever, either there is no economic rent to be taxed, or the tax is not working as intended.