The Tax Laws Amendment (2009 Measures No. 3) Bill 2009
(Cth) (Bill) amends, among other things, the
Petroleum Resource Rent Tax Assessment Act 1987 (Cth)
(PRRT Act).
Petroleum Rent Resource Tax (PRRT) is a tax on
profits generated by offshore petroleum projects (other than the
North West Shelf project). The PRRT is assessed on a project basis
and liability to pay PRRT is imposed on a taxpayer in respect of
its interest in the relevant project. Liability for PRRT is based
on a project's assessable receipts less project deductible
expenditures.
Modified "look-back" rule for exploration
expenditure
Currently, if a retention lease is derived from an exploration
permit and a production licence is then derived from that retention
lease, exploration expenditure incurred within the exploration
permit area but outside the retention lease area is not taken to
have been incurred in relation to the petroleum project identified
by the production licence. Consequently, such
