Who must comply with Petroleum Resource Rent Tax (PRRT)?
The applicability test for Petroleum Resource Rent Tax (PRRT) (ATO), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies only if you hold an interest in a petroleum project. Whether it applies turns on a fact that no industry, structure or size settles on its own.
What the obligation is
40% PRRT on offshore + onshore (Bass Strait only) petroleum project profits.
Petroleum Resource Rent Tax Assessment Act 1987. 40% tax on project profits with carry-forward of unrecovered expenditure. 2023 reforms (deductible expenditure cap from 1 July 2024) accelerate tax receipts.
The applicability test
Applies only if you hold an interest in a petroleum project. Whether it applies turns on a fact that no industry, structure or size settles on its own.
How the regulator frames it: Offshore petroleum project participants; onshore Bass Strait projects.
What triggers it: Petroleum project + receipt of receipts.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (1 of 35: only if a further fact applies; 34 of 35: no).
| Industry | Answer |
|---|---|
| Mining & resources | Only if a further fact applies |
| No | 34 other industries |
Business structure and size
Structure does not change the answer in mining & resources: for every structure the answer is "only if a further fact applies".
Size does not change the answer in mining & resources: at every size band the answer is "only if a further fact applies".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.
- Pty Ltd company in mining & resources with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you hold an interest in a petroleum project.
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has industry: Mining & resources. It then applies only if you hold an interest in a petroleum project. That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- Annual returns + quarterly instalments.
- Frequency
- Annual
- Evidence to keep
- Project accounts + expenditure register + carrying forward.
- Status
- Current
- Priority
- High
Penalty for not complying
No maximum penalty is recorded for this obligation in the Rules Mate corpus; check the regulator source below.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Obligations with the same applicability test
If this obligation applies to you, so does this one: the engine uses the same rule for each.
Where it sits in the corpus
Rules Mate tracks 37 published obligations tagged "tax", 6 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 7 of those apply outright. This obligation is rated high priority, and is a annual obligation.
Regulator, legislation and tools
Regulated by Australian Taxation Office.
ATO: Federal tax administrator covering income tax, GST, PAYG, FBT, superannuation guarantee, STP, and self-managed super funds. Also administers the Director ID regime via ABRS.
Petroleum Resource Rent Tax Assessment Act 1987: 40% PRRT on offshore + Bass Strait onshore petroleum project profits.
Free tools that help with this obligation:
Questions
- Who must comply with Petroleum Resource Rent Tax (PRRT)?
- Applies only if you hold an interest in a petroleum project. Whether it applies turns on a fact that no industry, structure or size settles on its own.
- Does Petroleum Resource Rent Tax (PRRT) apply to sole traders?
- Only if a further fact applies. Looking in mining & resources and every size band, the engine's answer for a sole trader is: only if a further fact applies.
- Does Petroleum Resource Rent Tax (PRRT) apply to businesses with 1–5 employees?
- Only if a further fact applies (1–5 employees, turnover $100K–$1M).
- When is "Petroleum Resource Rent Tax (PRRT)" due?
- Annual returns + quarterly instalments.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.