The Business Council believes that the Petroleum Resource Rent Tax (PRRT) has worked appropriately to date and changes should not be pursued without a clear, demonstrable net benefit from doing so. The potential for policy reversals to jeopardise future investment and exploration remains a serious concern. In this respect, attention is drawn to the terms of reference for the PRRT Review which noted that any proposals should not be ‘discouraging investment in exploration and development’.
The Business Council is concerned that ad hoc changes to the tax system, particularly those not grounded by coherent and consistent policy principles, will increase risk and chill decisions to invest in Australia. Any proposals should be looked at holistically rather than in a piecemeal way, recognising the complexity and nature of the design of the PRRT.