Resource rent tax in Australia

Journal Article · Tue Jan 01 04:00:00 EST 1985 · Energy J.; (United States)

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol6-NoSI-4· OSTI ID:6267741

Bradley, P G

Since July 1, 1984, new (greenfield) offshore petroleum projects lying beyond the territorial sea (thus under federal control) have been subject to a Commonwealth resource rent tax (CRRT). Rules are to be laid down for calculating the economic rent to be attributed to production of any petroleum-crude oil, condensate, natural gas, LPG, or ethane. This rent is the tax base, and it is to be taxed at a rate of 40%. The first section of this paper briefly summarizes the current situation in Australia. This account is based chiefly on a series of public discussion papers (Australia, 1983, 1984a, 1984b) issued by the Commonwealth government before introducing the new tax. Then examined are certain limitations that apply to any tax system designed to appropriate realized economic rent. The following section focuses on several problems specifically associated with the CRRT that must be resolved if this approach to taxing mineral revenues is to be widely copied. In conclusion, the author reviews major remaining issues in the CRRT discussion on both the theoretical and applied levels, and return to the question of why rent-based taxes have not been more widely adopted. 18 references.

• Research Organization: Mineral Revenues Inquiry, Perth, Western Australia
• OSTI ID: 6267741
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 6; ISSN ENJOD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
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& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294001 -- Energy Planning & Policy-- Coal
AUSTRALASIA
AUSTRALIA
INDUSTRY
NATIONAL GOVERNMENT
OFFSHORE OPERATIONS
PETROLEUM INDUSTRY
RESOURCE DEVELOPMENT
TAXES