KPMG energy and natural resources practice national tax leader Rod Henderson, in a presentation at the conference, said Australia’s simplified international tax regime would benefit both inbound and outbound investors.

“The tax reforms encourage Australian companies to compete more effectively in overseas markets and enable more efficient use of capital, while also enticing foreign investors to our shores,” Henderson said.

Australian-based companies looking offshore to spread their risk and find new oil and gas opportunities would now be significantly advantaged by being able to gain from foreign activities without being exposed to Australian capital gains tax.

Foreign branch profits will now be exempt from Australian taxation, regardless of where the profits are derived, as long as they are produced by an active business.

“This is good news for Australian-listed companies with a major offshore focus that are looking to attract larger foreign investment,” Henderson said.

He argued there was still room for further tax reforms at the operational level in areas such as exploration incentives, but said increasing tax efficiencies given by investment structures and boosting return to investors was a good first step in boosting exploration and production.

“When combined, the tax changes make Australia a far more tax-efficient place to hold global petroleum projects,” Henderson said.

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