Mr Barry Jones, the Executive Director of the Australian Petroleum Production & Exploration Association (APPEA), today welcomed the Federal Government's announcement in the Budget, setting new depreciation write-off rates for plant and equipment used in oil and gas operations in Australia.
"This is a very positive outcome, with the potential to facilitate major export and domestic energy developments throughout Australia," Mr Jones said.
"The petroleum exploration and production industry strongly endorses the positive policy intervention on the part of the Federal Government, which has ensured that the unrealistic write-off rates that were being contemplated by the Australian Taxation Office are to be discarded," he said.
"In particular, the Minister for Industry, Tourism and Resources and his colleagues have acted decisively to ensure that the Australian oil and gas industry has not been seriously disadvantaged relative to our competitors."
Mr Jones said that while the tax rates announced in the Budget were a vast improvement on those that were being considered by the ATO, Australia must continue to more actively compete for international investment capital.
"The Government's current Energy Market Review remains an important mechanism by which the impediments to further investment can be addressed," he said.
