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PRRT – anti-avoidance provisions and clarifying treatment of ‘exploration’ and MQPRs

Published Date: 12 Feb 2024


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The Tax Institute welcomes the opportunity to make a submission to the Treasury in respect of its consultation on the exposure draft legislation and explanatory materials proposing to clarify the tax treatment of ‘exploration’ and ‘mining, quarrying and prospecting rights’ (MQPRs) in the Petroleum Resource Rent Tax Assessment Act 1987 (Cth) (PRRT Act) and the Income Tax Assessment Act 1997 (Cth), respectively.

Our comments in this submission are limited to the proposed start date of the ‘exploration’ amendments, and the implications of applying the law retrospectively.

We recommend deferring the proposed start date to apply on a prospective basis so that taxpayers have sufficient time to adapt to the proposed changes and manage their tax affairs efficiently and are not unfairly disadvantaged for historically having complied with the law as it then stood. If retrospective law change is required to ensure taxpayers are not adversely impacted by the decision Full Federal Court in Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2 (Shell), this should be limited to changes that are necessary to achieve this outcome. The amendments should not go further so as to leave taxpayers in a potentially non-compliant historical position, particularly where they have managed their tax affairs consistent with pre-existing guidance. Our detailed response is contained in Appendix A.

The Tax Institute is the leading forum for the tax community in Australia. We are committed to shaping the future of the tax profession and the continuous improvement of the tax system for the benefit of all. In this regard, The Tax Institute seeks to influence tax and revenue policy at the highest level with a view to achieving a better Australian tax system for all.


  • Published On:12 Feb 2024

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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. 

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