Stuart Robert (Fadden, Liberal Party, Assistant Treasurer) Share this | Hansard source

Let me thank the members who've contributed to the debate. The Treasury Laws Amendment (2019 Petroleum Resource Rent Tax Reforms No. 1) Bill 2019 implements key components of the government's response to the Petroleum resource rent tax review, undertaken by Mike Callaghan AM, PSM. Since the PRRT was introduced, in 1988, Australia's petroleum industry has changed, shifting to a greater role for liquefied natural gas, LNG. Schedule 1 to the bill lowers the uplift rate that applies to exploration in general carried-forward expenditure. This prevents excessive compounding of deductions.

Schedule 2 to the bill removes onshore projects from the PRRT. No PRRT has ever been collected from onshore projects. In practice, onshore projects that would never pay PRRT have been able to transfer exploration deductions to offshore projects, reducing revenue. Onshore projects remain subject to state taxation.

These measures strengthen the integrity of the PRRT and ensure a fairer return for Australia for the extraction of our oil and gas resources. I commend the bill to the House.

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