Petroleum Resource Rent Tax concessions under the microscope ahead of May budget
7:30 Report | Andrew Proben
Oil and gas companies could lose some of their generous tax deductions following a review of the Petroleum Resource Rent Tax (PRRT).
Under current rules, oil and gas companies with PRRT liabilities can deduct their exploration costs, indexed at the long-term bond rate plus 15 per cent.
At that rate, the value of the deduction doubles every four years, and exploration costs are deducted only after development and construction costs are first recovered.