Bloomberg Tax
Aug. 21, 2023, 12:40 PM

Australia Proposes to Cap Deductions for Petroleum Tax

Danish Mehboob
Reporter

Australia’s Petroleum Resource Rent Tax would limit tax deductions on petroleum projects under draft legislation.

Australia Treasurer Jim Chalmers said at a press conference Monday the bill is the first draft legislation on the Petroleum Resource Rent Tax to cap the availability of deductible expenditures.

“This is a sensible change. It’s been worked through methodically to ensure that offshore LNG pays more tax sooner, so that we can fund our priorities,” Chalmers said, referring to liquified natural gas.

The legislation is currently being consulted on.

  • The cap on deductions applies to entities with a taxable profit of 10% of ...

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