{"id":"C2004A03552","name":"Petroleum Resource Rent Tax Act 1987","slug":"petroleum-resource-rent-tax-act-1987","collection":"act","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":"143 of 1987","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7377,"registerId":"commonwealth-C2004A03552-current","compilationNumber":null,"startDate":"2026-03-30","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Petroleum Resource Rent Tax Act 1987","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nPetroleum Resource Rent Tax Act 1987\n\n \n\nNo. 143 of 1987\n\n \n\n \n\n \n\n \n\n \n\nAn Act to impose a tax in respect of the profits of certain petroleum projects\n\n \n\n \n\n \n\nContents\n\n[1 Short title](#_Toc425251452)\n\n[2 Commencement](#_Toc425251453)\n\n[3 Incorporation](#_Toc425251454)\n\n[4 Imposition of tax](#_Toc425251455)\n\n[5 Rate of tax](#_Toc425251456)\n\n \n\n![](image.001.png)\n\n \n\n \n\nPetroleum Resource Rent Tax Act 1987\n\nNo. 143 of 1987\n\n \n\n \n\n \n\nAn Act to impose a tax in respect of the profits of certain petroleum projects\n\n[Assented to 18 December 1987]\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act may be cited as the Petroleum Resource Rent Tax Act 1987.\n\n2  Commencement\n\n  This Act shall come into operation on the day on which the Petroleum Resource Rent Tax Assessment Act 1987 comes into operation.\n\n3  Incorporation\n\n  The Petroleum Resource Rent Tax Assessment Act 1987 is incorporated and shall be read as one with this Act.\n\n4  Imposition of tax\n\n  Tax is imposed in respect of the taxable profit of a person of a year of tax in relation to a petroleum project.\n\n5  Rate of tax\n\n  The rate of tax in respect of the taxable profit of a person of a year of tax in relation to a petroleum project is 40%.\n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-batch","completionTokens":1619},"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is the original 1987 legislation and its scope remains tightly constrained to imposing the tax at a fixed rate. While the companion Assessment Act has expanded significantly over decades to cover new projects and calculation methods, this Imposition Act has not drifted from its original, narrow purpose."},"complexity_factors":["Only 5 sections with no internal definitions","No conditional logic, exceptions, or nested provisions","Single operative cross-reference to the Assessment Act (incorporation by reference)","Straightforward command structure: 'Tax is imposed' and 'The rate... is 40%'"],"plain_english_summary":"This Act is the legal engine that makes the **Petroleum Resource Rent Tax (PRRT)** collectible. In simple terms, it does three things:\n\n*   **Imposes the tax**: It creates a legal obligation to pay tax on the \"taxable profit\" made from certain petroleum projects (mainly offshore oil and gas operations).\n*   **Sets the rate**: It fixes the tax rate at **40%** of those profits.\n*   **Links to the rulebook**: It declares itself to be read together with the *Petroleum Resource Rent Tax Assessment Act 1987*. While this Act (the Imposition Act) creates the tax, the Assessment Act contains all the complex rules about how to calculate \"taxable profit\", what deductions are allowed, and who exactly is liable.\n\n**Who it affects**: Companies operating eligible petroleum projects in Australian offshore waters. They pay 40 cents in tax for every dollar of profit above certain thresholds defined in the Assessment Act."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The operative text matches the Act’s stated purpose of imposing a tax on profits of certain petroleum projects: it imposes tax on taxable profit for a year of tax in relation to a petroleum project (section 4) at a 40% rate (section 5), incorporates the Assessment Act for procedural and definitional detail (section 3), and ties commencement to that Assessment Act (section 2). There is no indication in the provided text that the scope departs from that stated objective."},"complexity_factors":["Few substantive provisions: only short title, commencement, incorporation, imposition and rate (sections 1–5).","Heavy reliance on another instrument (Petroleum Resource Rent Tax Assessment Act 1987) for definitions, calculation and administration (section 3) — requires cross-reference to understand full operation.","Temporal dependency: commencement tied to the Assessment Act coming into operation (section 2).","Key economic effect is simple and fixed (single statutory rate of 40%) (section 5), reducing internal complexity but leaving technical tax mechanics to the incorporated Act.","The excerpt does not define central terms (e.g. 'taxable profit', 'petroleum project'), increasing practical complexity through required external lookup (section 3)."],"plain_english_summary":"This Act imposes a 40% tax on taxable profits from petroleum projects, payable by any person who has such a profit. It does not set out detailed rules itself but incorporates the Petroleum Resource Rent Tax Assessment Act 1987 for definitions, calculation and administration. The tax only takes effect when that Assessment Act comes into operation."}},"importantCases":[],"_links":{"self":"/api/acts/petroleum-resource-rent-tax-act-1987","history":"/api/acts/petroleum-resource-rent-tax-act-1987/history","analysis":"/api/acts/petroleum-resource-rent-tax-act-1987/analysis","conflicts":"/api/acts/petroleum-resource-rent-tax-act-1987/conflicts","importantCases":"/api/acts/petroleum-resource-rent-tax-act-1987/important-cases","documents":"/api/acts/petroleum-resource-rent-tax-act-1987/documents"}}