Source: Australian Tax Forum Journal Article
Published Date: 1 Dec 2022
The resource rent tax (RRT) is a concept conceived in the 20th century that underpins the petroleum resource rent tax (PRRT), a federal legislation in Australia for taxing oil and gas. The PRRT is levied on mineral extraction from the multi-billion dollar offshore petroleum industry. The narrative method is used to recount the emergence of the RRT concept, developed by Ross Garnaut and Anthony Clunies Ross in the 1970s. This article considers the adequacy of the RRT concept and its underlying principles, with a focus on its application to gas via the PRRT. The RRT concept was first developed in the 1970s for Papua New Guinea, and since the 1980s, has been applied in Australia. This article finds that the RRT, and consequently the PRRT, is not achieving its policy and fiscal objectives, and there have been no major developments to meet modern concerns about the energy sector and issues such as climate change. This reflection on the RRT and its impact on the PRRT is therefore timely and significant. This research contributes to the debate about the effectiveness of the RRT concept for gas in Australia, and the need for change. A new set of guiding principles for change is needed, and we advance energy justice for this purpose.
Tax as a solution for irrigation water scarcity, quality and sustainability: case studies in Australia and New Zealand - Journal 01 Oct 2021
Treasury review of the petroleum resource rent tax: gas transfer pricing arrangements - Journal 01 Jul 2021
Tax law, policy and energy justice: Re-thinking biofuels investment and research in Australia - Journal 01 Mar 2020
Petroleum Resource Rent Tax Review 2017: split priorities found in public submissions - Journal 01 Jul 2018
Low oil price shock in Malaysia: Government fiscal impact and petroleum industry reactions - Journal 01 Dec 2017
Finally, a goods and services tax for Malaysia: A comparison to Australia's GST experience - Journal 01 Jul 2016
A grounded theory approach to the minerals resource rent tax - Journal 01 Dec 2013
Resource rent taxes: The politics of legislation - Journal 01 Aug 2012
Minerals Resource Rent Tax (MRRT): Mining project evaluation techniques - Journal 01 Aug 2010
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.