Charge companies Does not discourage This charge would require both when profitability companies from exploring Commonwealth and State reached on acreage. legislative change. production lease At this stage companies Not defensible as cost recovery should have derived financial due to long lead time between GA benefit from the GA work work and this stage (10-30 years) (especially if in a frontier and the limited portion of users of area). the information required to contribute. There is a clear trigger point for the charge. Industry commences paying PRRT at this stage and this new charge Charge is a relatively small could be seen as an arbitrary percentage of the profits that method of increasing this tax. most discoveries will make. Likely negative industry reaction in terms of perceived change in sovereign risk and perceived elements of retrospectivity.
Charge companies when profitability reached on production lease Does not discourage companies from exploring acreage. At this stage companies should have derived financial benefit from the GA work (especially if in a frontier area). There is a clear trigger point for the charge. Charge is a relatively small percentage of the profits that most discoveries will make. This charge would require both Commonwealth and State legislative change. Not defensible as cost recovery due to long lead time between GA work and this stage (10-30 years) and the limited portion of users of the information required to contribute. Industry commences paying PRRT at this stage and this new charge could be seen as an arbitrary method of increasing this tax. Likely negative industry reaction in terms of perceived change in sovereign risk and perceived elements of retrospectivity.