Offshore liquefied pure gasoline (LNG) producers can be taxed extra underneath a federal authorities proposal to shore up home provide and “ensure Australia remains a reliable international energy supplier and investment partner.”
The modifications to the petroleum useful resource lease tax (PRRT) would put a cap on deductions, limiting the proportion of PRRT assessable revenue that may be offset by deductions to 90 per cent.
The modifications reply to the Treasury Gas Transfer Pricing (GTP) assessment, in addition to suggestions within the earlier Callaghan assessment.
The authorities will undertake eight of 11 suggestions within the GTP assessment, and an additional eight from the Callaghan assessment.
It’s anticipated to generate $2.4bn in tax receipts over the ahead estimates.
“Under the current rules, most LNG projects are not expected to pay any significant amounts of PRRT until the 2030s,” mentioned a authorities media launch, “the changes announced [Saturday] address this issue.”
It’s hoped the modifications will come into impact from July 1.
“It’s been clear for some time that the PRRT isn’t up to scratch,” mentioned Treasurer Jim Chalmers.
“That’s something most Australians would agree with, including the former government that initiated the review.”
“These sensible changes see the offshore LNG industry pay more tax, sooner.
“They also deliver a fairer return to the Australian people from the resources they own, provide certainty to industry and ensure Australia remains a reliable trade and investment partner.
“These changes will make a meaningful contribution to the Budget that we hand down on Tuesday night, helping to support our efforts to get the nation’s finances back on track, fund vital services and provide responsible cost-of-living relief.”
Source: www.perthnow.com.au
