The Government has announced it will introduce a temporary levy on offshore petroleum production. The levy will recover the Commonwealth’s costs of decommissioning the Laminaria-Corallina oil fields and associated infrastructure. Imposition of the levy is to ensure taxpayers are not left to pay for the decommissioning and remediation of production facilities and associated infrastructure in the Laminaria and Corallina oil fields.
It is intended that the levy will apply to registered holders of petroleum production licences under the Offshore Petroleum and Greenhouse Gas Storage Act 2006. The levy will be at a standardised rate of 48 cents per barrel of oil produced in each levy year. The Australian Taxation Office will administer the levy.
Feedback from stakeholders is sought on the attached Exposure Draft legislation.