Contract (PSC). PSCs are agreements between the parties to a petroleum extraction facility and the Australian and Timor Leste governments regarding the percentage of production each party will receive after the participating parties have recovered a specified amount of costs and expenses. and Territory Petroleum Royalties Onshore royalties are levied on petroleum production and are collected by the states. The rate is generally set at 10 per cent of net wellhead of production. Table 1 is a summary of the tax regimes applying to each oil and gas region in Australia. Table 1 Summary of Regimes Applicable to Each Region — PRRT Excise State Royalties Commonwealth Resource Rent Royalties Royalty (RRR) Commodities Any naturally oil and Any naturally Any naturally Any naturally occurring condensate occurring occurring occurring hydrocarbon (or hydrocarbon (or hydrocarbon (or hydrocarbon (or naturally naturally naturally naturally occurring occurring mixture occurring mixture occurring mixture mixture of of hydrocarbons), of hydrocarbons), of hydrocarbons), hydrocarbons), whether in whether in whether in whether in gaseous, gaseous, liquid or gaseous, liquid or gaseous, liquid or liquid or solid state. state. solid state.(a) solid state. Excludes oil shale. Includes oil shale. Onshore b Yes Yes Yes No Barrow Island only 1 July 2012) Offshore Yes North West shelf No West shelf No 1988) only only West shelf Yes Yes No Yes. Shared with No (special offshore (since Western area) 1 July 2012) Barrow Island Yes No No No Yes (special onshore (replaced with (replaced with (replaced with (since 1985) (d) area) RRR) RRR) RRR) Bass Strait Yes No No No No (since 199091)(e) (offshore) Slight variations across states. Including within three nautical miles of the Australian coastline. The Commonwealth is also entitled to 40 per cent of royalties obtained by Western Australia from petroleum developments derived from pre1979 leases which are located in the coastal waters region adjacent to Western Australia. These royalties are shared with Western Australia according to the formula set out in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 Section 75 (approximately one third to the Commonwealth, two thirds to — Western Australia). Shared between the Commonwealth and Western Australia 75:25. Production in Bass Strait changed from a royalty/excise regime to PRRT in 199091.
Contract (PSC). PSCs are agreements between the parties to a petroleum extraction facility and the Australian and Timor Leste governments regarding the percentage of production each party will receive after the participating parties have recovered a specified amount of costs and expenses. and Territory Petroleum Royalties Onshore royalties are levied on petroleum production and are collected by the states. The rate is generally set at 10 per cent of net wellhead of production. Table 1 is a summary of the tax regimes applying to each oil and gas region in Australia. Table 1 — Summary of Regimes Applicable to Each Region PRRT Excise State Royalties Commonwealth Royalties Resource Rent Royalty (RRR) Commodities Any naturally occurring hydrocarbon (or naturally occurring mixture of hydrocarbons), whether in gaseous, liquid or state. Includes oil shale. oil and condensate Any naturally occurring hydrocarbon (or naturally occurring mixture of hydrocarbons), whether in gaseous, liquid or solid state.(a) Any naturally occurring hydrocarbon (or naturally occurring mixture of hydrocarbons), whether in gaseous, liquid or solid state. Any naturally occurring hydrocarbon (or naturally occurring mixture of hydrocarbons), whether in gaseous, liquid or solid state. Excludes oil shale. Onshore b Yes 1 July 2012) Yes Yes No Barrow Island only Offshore Yes 1988) North West shelf only No West shelf only No West shelf (special offshore area) Yes (since 1 July 2012) Yes No Yes. Shared with Western No Barrow Island (special onshore area) Yes No (replaced with RRR) No (replaced with RRR) No (replaced with RRR) Yes (since 1985) (d) Bass Strait (offshore) Yes (since 199091)(e) No No No No Slight variations across states. Including within three nautical miles of the Australian coastline. The Commonwealth is also entitled to 40 per cent of royalties obtained by Western Australia from petroleum developments derived from pre1979 leases which are located in the coastal waters region adjacent to Western Australia. These royalties are shared with Western Australia according to the formula set out in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 — Section 75 (approximately one third to the Commonwealth, two thirds to Western Australia). Shared between the Commonwealth and Western Australia 75:25. Production in Bass Strait changed from a royalty/excise regime to PRRT in 199091.
R2016-001_PRRT.docx