The Business Council's submission to the review of the Petroleum Resource Rent Tax (PRRT) cautions against short-sighted changes.
The Business Council believes companies must meet their tax obligations and do so in a transparent way – including the PRRT. We understand the government’s call to ensure protection of Australia’s revenue base and confirm that companies are paying the right amount of tax.
The Business Council believes the PRRT has worked appropriately to date. No changes should be pursued without a clear, demonstrable net benefit from doing so. The tax system, indeed the broader investment climate, must ensure that the Australian economy, which is heavily reliant on trade and foreign investment, remains strong, builds investor confidence and continues to grow.
Concerns about current PRRT revenue levels are misplaced. The tax is operating as intended and designed, with current revenues reflecting the current unique stage of the industry’s cycle.