TAX REFORM IN THE OIL INDUSTRY

Abstract

Following the return of the Liberal National Country Party for its second term of office under the Prime Minister, Mr John Howard, the Federal Government established a committee headed by a business executive Mr John Ralph. This Committee produced an extensive report recommending substantial changes to the Australian tax legislation. Following consideration of the report by the Federal Government, substantial amendments were proposed in September and November 1999. Many of these proposals have now been legislated and several remain in the pipeline awaiting Parliament scrutiny.

This paper covers the practical aspects of the changes to the tax legislation, along with examination of particular issues associated with new developments in matters such as gas banking. Particular focus has been made on the new Uniform Capital Allowances Provisions and the deductions which will be available to the industry against upstream project development expenditures.