Energy and Resources Point-in-Time Service Updates

The Energy and Resources Point-in-Time Service has been updated to include the Treasury Laws Amendment (Laminaria and Corallina Decommissioning Cost Recovery Levy) Act 2022 (Cth) (Act 24 of 2022).

Act 24 of 2022

Schedule 1 to the Act makes amendments to the Income Tax Assessment Act 1997, the Petroleum Resource Rent Tax Assessment Act 1987 and the Tax Administration Act 1953 to specify certain administrative features relating to the Laminaria-Corallina cost recovery levy, including the requirement that the levy is payable to the Commissioner annually.

The levy will recover the Commonwealth’s costs of decommissioning the Laminaria-Corallina oil fields and associated infrastructure. Imposition of the levy is to ensure taxpayers are not left to pay for the decommissioning and remediation of production facilities and associated infrastructure in the Laminaria and Corallina oil fields.

It is intended that the levy will apply to registered holders of petroleum production licences under the Offshore Petroleum and Greenhouse Gas Storage Act 2006. The levy will be at a standardised rate of 48 cents per barrel of oil produced in each levy year. The Australian Taxation Office will administer the levy.

The new amendments have been updated in the Point-in-Time Energy and Resources Service current to 9 May 2022. (NB: Subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.