Question:
Petroleum resource rent tax expanded
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
Yet another four Bills have been introduced into the House of Representatives relating to the Petroleum Resource Rent Tax (PRRT). These are:
- Petroleum Resource Rent Tax Assessment Amendment Bill 2011;
- Petroleum Resource Rent Tax (Imposition – Customs) Bill 2011;
- Petroleum Resource Rent Tax (Imposition – Excise) Bill 2011; and
- Petroleum Resource Rent Tax (Imposition – General) Bill 2011.
These bills are also being considered by the House of Representatives Standard Committee on Economics.
The expansion of PRRT will apply from 1 July 2012. The three Imposition Bills are retrospective to 1 July 1986.
The legislation is intended to:
- Extend the PRRT to onshore oil and gas projects, as well as the North West Shelf project;
- Apply the PRRT to oil and coal seam gas if they are not subject to the MRRT;
- Take effect from 1 July 2012;
- Apply the PRRT to sale of incidental products or provision of services relating to carbon capture and storage;
- Clarify deductibility of environmental expenditure;
- Allow deductions for payment of other resource taxes;
- Provide deductions for payments under the Native Title Act 1993;
- Allow deductions for existing permits for leases or alternatively recognise expenditure on past investments; and
- Allow consolidated entities the option of having their interest treated as a single interest.
The additional Imposition Bills relate to whether the PRRT is a customs duty, excise duty or something else. They are all made retrospective to the commencement of the original Imposition Act.
WTB 1746
