The Chamber of Minerals and Energy of Western Australia provides cautious support for the Federal Government’s decision to call an independent inquiry into the Petroleum Resource Rent Tax (PRRT).
Chief Executive, CME Reg Howard-Smith said the PRRT framework is working as intended.
“The industry will engage with the Review constructively as it will provide an opportunity to demonstrate the tax and royalty contributions made by the oil and gas sector to both the Federal and State economies.
However, it is important subjective concepts included in the terms of reference such as ‘pay[ing] their fair share of tax’ and ‘appropriate return to the community’ are considered in an evidence based manner.
It is also important the PRRT not be considered in isolation given the other tax contributions by companies in this sector.
Any potential changes to the PRRT should ensure it does not risk future foreign and local investment in major LNG projects, both new and expansions, which would have a long term impact on the Australian economy.
Whenthe PRRT was introduced in 1980’s, it was done so through extensive consultation with the sector. It is important the review and any proposed reform is done in a similar manner to prevent any unintended consequences.