APPEA welcomes tax review

APPEA Chief Executive Malcolm Roberts

APPEA Chief Executive Malcolm Roberts

The Australian Petroleum Production and Exploration Association (APPEA) has welcomed the announcement of a review into the petroleum tax system.

Treasurer Scott Morrison announced the review yesterday saying that revenues raised from oil and gas taxes and fallen sharply in the last few years.

APPEA Chief Executive Dr Malcolm Roberts has said the review is timely as the industry faces the challenges of a drop in profits and exploration.

“Despite the industry recording its first-ever net loss in 2014-15 – it paid more than $5 billion worth of taxes during the same period,” said Dr Roberts.

“The continued payment of taxes at a time when the industry is under severe pressure debunks critics’ suggestions that the industry is somehow not paying its way.”

Dr Roberts said that a fact-based review of the Petroleum Resource Rent Tax (PRRT) by the Treasury would show that it is working as intended.

“The PRRT regime that the Labor Party introduced in the 1980s is a major reason why Australia has attracted more than $200 billion worth of new investment in recent years,” said Dr Roberts.

“These new projects will provide taxes, jobs and other benefits for Australia for decades to come.”

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