The Australian Government has released the Treasury Gas Transfer Pricing (GTP) Regulation Review final report, which made 11 recommendations to ensure a fairer return from offshore liquefied natural gas projects, while limiting impacts on investment incentives and risks to future supply.

In response to the report, Treasurer Jim Chalmers announced changes will be made to the Petroleum Resource Rent Tax (PRRT) regime by introducing a cap on the use of deductions from 1 July 2023. Specifically, the change will limit the proportion of PRRT assessable income that can be offset by deductions to 90 per cent.

He expected the move, along with other measures, would increase tax receipts by $2.4 billion over the next four years.

Access the full report and the Government’s response.

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