ARCHIVE - The Hon Ian Macfarlane MP was the former Minister for Industry, Tourism and Resources. The following media release was issued during his term as Minister. A new Government was sworn in by the Governor-General on 3 December 2007, including the following Ministerial appointments:
Senator the Hon Kim Carr - Minister for Innovation, Industry, Science and Research
The Hon Dr Craig Emerson MP - Minister for Small Business, Independent Contractors and the Service Economy, Minister Assisting the Finance Minister on Deregulation.
For media releases from the current term of Government, please visit http://minister.innovation.gov.au/Pages/default.aspx
Media Release
The Hon Ian Macfarlane, MP
8 May 2007
(Joint media release with Peter Dutton MP, Minister for Revenue and Assistant Treasurer)
The Government has announced three policy changes to the petroleum resources rent tax (PRRT), directed at lowering compliance costs for PRRT taxpayers and removing inconsistencies. The commencement date for these measures is 1 July 2008.
The first change introduces a functional currency rule into the PRRT, similar to the functional currency rule in income tax. This will allow oil and gas producers to elect to work out their PRRT position in a foreign currency and is designed to reduce compliance costs for PRRT taxpayers.
The second change introduces a ‘look-back’ rule for exploration expenditure relating to production licences derived from exploration permits and retention leases. In particular, this measure will ensure that all exploration expenditure is deductible for PRRT purposes where a production licence is derived from a retention lease on or after 1 July 2008.
The third change refines the external petroleum provisions so they address the circumstance where two petroleum projects overlap with each other, removing an inconsistency in the PRRT. This will ensure that in all cases where a petroleum project processes petroleum sourced from another petroleum project for a tolling fee, the tolling fee received is treated as a PRRT receipt, and the expenses incurred to process the petroleum are treated as a PRRT deduction.
These changes are consistent with the Government's track record of simplifying Australia's taxation system and will make it increasingly internationally competitive.
The Government will undertake a consultation process in preparing legislation to implement these changes.
Media Contact: Claire Wilkinson (02) 6277 7580 (Minister for Industry, Tourism and Resources); Brad Emery (02) 6277 7360 – 0414 225 638 (Minister for Revenue and Assistant Treasurer)