Federal Industry and Resources Minister Ian Macfarlane said the Petroleum Resource Rent Tax Assessment Amendment Bill 2006 would reduce compliance costs, improve administration and remove inconsistencies in the PRRT, while also improving the tax’s efficiency.

The amendments to the PRRT legislation:

• require the deduction of transferable exploration expenditure when calculating quarterly instalments;

• allow the deduction of closing-down costs when moving from a production to an infrastructure licence;

• allow taxpayers to self assess their PRRT liability;

• provide roll-over relief for internal corporate restructuring;

• allow the deduction of fringe benefits tax;

• introduce a transfer notice requirement for vendors disposing of an interest in a petroleum project;

• extend the lodgement period for PRRT annual returns from 42 days to 60 days; and

• make several minor technical amendments.

These changes will take effect from July 1.

APPEA, the peak body representing Australia’s upstream oil and gas industry, said the amendments clarified several areas of uncertainty in the Act and provided a clearer framework for industry participants to undertake their ongoing business activities.

“APPEA looks forward to working closely with the Government in coming months towards resolving a range of other uncertainties with a view to making the Act operate in a manner that reflects the commercial environment confronting the industry today,” APPEA chief executive Belinda Robinson said.

The amendments will enact the decisions previously announced in the 2005-06 Federal Budget that are designed to modernise the PRRT regime.