The Australian Government's Policy Transition Group (PTG) has today provided its advice to the Treasurer, in accordance with its terms of reference, on the recommended technical design and implementation arrangements for the Government’s resource taxation reforms.
In compiling its advice, the PTG considered feedback from industry and other stakeholders provided during consultations across Australia as well as through a large number of written submissions.
The PTG has provided its advice to the Treasurer in two parts.
The first report contains 94 recommendations on the design and implementation of the policy principles announced by the Government on 2 July 2010 relating to the introduction of the Minerals Resource Rent Tax and the transition arrangements for the Petroleum Resources Rent Tax. The report also provides general advice on some possible changes to the PRRT that would improve its administration.
The second report deals exclusively with exploration incentives.
The PTG has also recommended that an Implementation Group be established with industry representatives, taxation experts and officers from the Department of Resources, Energy and Tourism, Treasury and the ATO, and that this group should be consulted on the detailed legislative and administrative design, implementation and eventual review of the new taxation arrangements.
Consideration of the PTG’s advice is now a matter for the Treasurer and the Government.