Currently excise applies to crude oil and condensate produced from onshore petroleum fields. Production below a threshold of 30 million barrels per field is excise-free, but producers must still register as manufacturers of excisable goods. This means that onshore producers must meet the ongoing verification, administrative and compliance requirements imposed by the excise regime. Decrease the unnecessary compliance burden faced by these producers by either changing production below the threshold from excise free to excise exempt, or by removing the excise regime entirely for these producers.
This idea was submitted to the Board prior to the launch of Sounding Board. The Board understands that the proposal has the potential to significantly reduce compliance burdens for affected taxpayers. The idea is under Board consideration.
The Government has recently announced a review of the Petroleum Resource Rent Tax. The Terms of Reference for this review can be found here.
The Board has referred this idea to the review for their consideration.
Interested parties can submit a formal submission to the Petroleum Resource Rent Tax review. Details are can be found at the following link: http://www.treasury.gov.au/ConsultationsandReviews/Reviews/2016/Review-of-the-Petroleum-Resource-Rent-Tax/Consultation