Unclassified specification

Specification	software developers	February 2014	UNCLASSIFIED
format	Audience	Date	Classification

Electronic reporting specification Petroleum resource rent tax (PRRT) version 1.0.0
UNCLASSIFIED	For further information or questions, call 13 28 66

DEFINITIONS

Table of contents

1 Introduction

About Petroleum resource rent tax

The petroleum resource rent tax (PRRT) is a tax on profits generated from the sale of marketable petroleum commodities (MPCs).

• 
  stabilised crude oil
  
• 
  sales gas
  
• 
  condensate
  
• 
  liquefied petroleum gas
  
• 
  ethane
  
• 
  shale oil
  
• 
  any other product declared by regulation to be an MPC.
  

PRRT affects any entity that has an interest in an offshore or onshore exploration permit, retention lease or production licence, or an interest in the North West Shelf project or the Bass Strait project. Groups consolidated for income tax may also consolidate for PRRT. Joint venture partners have individual responsibilities and contractors normally do not have PRRT responsibilities

Extended PRRT regime

PRRT has applied to offshore petroleum projects (except for the North West Shelf project and the Joint Petroleum Development Area (JPDA)) since 1987. The Bass Strait project has been subject to PRRT since 1990.
From 1 July 2012, the PRRT regime was extended to onshore petroleum projects, including coal seam gas, tight gas and oil shale projects. It was also extended to the North West Shelf project but not to the Joint Petroleum Development Area in the Timor Sea.
In recognition of the unique features of onshore petroleum projects, several changes were made to the PRRT regime. These changes also apply to existing and future offshore petroleum projects. Broadly, the changes are:

• 
  all Commonwealth, state and territory resource taxes can be credited against current and future PRRT liabilities for a petroleum project
  
• 
  expenditure for an environmental purpose is deductible if it has a sufficient links to a petroleum project
  
• 
  native title payments are deductible if they are made under the Native Title Act 1993 and have a sufficient links to a petroleum project
  
• 
  revenue generated from the sale of incidental products or from providing carbon capture and storage services are assessable if the products arise from the activities of a petroleum project.
  

This specification is to be used in the development of software for the lodgment of electronic versions of the:

• 
  Petroleum resource rent tax (PRRT) annual return (2012–13 financial year onwards)
  
• 
  Petroleum resource rent tax (PRRT) instalment statement (2013-14 financial year onwards)
  
• 
  Petroleum resource rent tax (PRRT) deductible expenditure schedule
  
• 
  Petroleum resource rent tax (PRRT) notification of transfer of an interest in a petroleum title
  
• 
  Notification of transfer of petroleum resource rent tax (PRRT) exploration expenditure
  

2 Legal requirements

PRRT is payable on the profits (taxable profit) made from a petroleum project. The tax is project based, which means that at the end of the financial year, an entity calculates its PRRT liability separately for each project interest it holds. A petroleum project exists if a production licence is in force. An entity is not liable to pay PRRT for a specific project interest until it has assessable petroleum receipts.
A PRRT entity with assessable petroleum receipts makes four payments a year; three cumulative instalments and a fourth payment with the lodgment of its PRRT return. Instalments are due by 21 October, 21 January and 21 April each year. The final payment (if any) is due by 29 August, when the PRRT return is also due, unless the Commissioner allows further time to lodge.

Reporting obligations

Lodging a PRRT return

An entity with an interest in a petroleum project that is in commercial production needs to lodge a PRRT return for a financial year, even if its taxable profit is nil.

Any final payment of tax is also due to be paid on 29 August following the end of the financial year. However, if the PRRT instalments paid for the financial year exceed the assessed PRRT liability for the year, a refundable amount arises.

Lodging quarterly PRRT instalment statements

An entity is required to pay its PRRT liability for a financial year in three cumulative quarterly instalments with a final payment (if any) when it lodges its PRRT return.
The financial year for PRRT purposes begins on 1 July and ends on 30 June of the following year. An entity is not able to choose a substituted accounting period for PRRT.
PRRT instalments of tax are due and payable on or before 21 October, 21 January and 21 April of each financial year. PRRT instalment statements need to be lodged on or before those dates for a relevant instalment period.
PRRT instalments are cumulative with each instalment period effectively treated as a financial year. An instalment period is the period starting at the beginning of the financial year and ending at the end of the month before the month in which the instalment is due and payable. That is, the instalment period is the three month, sixth month or nine month period ending on 30 September, 31 December or 31 March in a financial year
Retention of information

Under taxation law, payers must keep payment information for a period of five years. The information can be kept electronically.

If entities require additional time to lodge a PRRT return or PRRT instalment statement electronically, phone 13 28 66.

Privacy

The Privacy Act 1988 limits the collection, storage, use and disclosure of personal information about individuals by the ATO, other Commonwealth Government departments and agencies.

3 Reporting procedures

Reporting for the first time

Software developers developing reporting software for the electronic generation of Petroleum resource rent tax (PRRT) returns / instalment statements, PRRT schedules or transfer forms should refer to this specification when developing their application. Information is also available on the Software developer’s homepage website at http://softwaredevelopers.ato.gov.au.

which may assist businesses to meet their tax obligations.

Test facility

A test facility is provided to software developers to self test the contents of test files. It is accessed using a user ID and password.
The test facility supports testing of files that comply with the latest versions of electronic reporting specifications. It cannot be used to make lodgments to the ATO.
The same validation process will be applied to files checked in the test facility and files that will be lodged via the ATO portals.
To test a file:

1. 
   Prepare the files using software developed in accordance with the published reporting specifications.
   
2. 
   Log in to the test facility using the user ID and password.
   
3. 
   Select ‘Send data’ located in the left hand menu.
   
4. 
   Select ‘Browse’ to locate the file and then select ‘OK’.
   
5. 
   Select ‘Send’ to submit the file to the ATO, where it will be checked for format compatibility and data quality.
   
6. 
   Select ‘Transaction history’ to confirm the file has been uploaded. This can be done while the file is being validated for errors and warnings.
   
7. 
   When the validation is complete select ‘Download’ from the Transaction history screen to download the validation report confirming the data is in a valid format or detailing any errors found.
   

To obtain a user ID and password for the test facility, complete the File transfer test facility registration form at http://softwaredevelopers.ato.gov.au/bulktest. The test facility can be accessed from the same location.

For support in the use of the test facility, including password reset: email ATOBulkDataTransfer@ato.gov.au, or phone (02) 6216 4004 between 8.30am and 4.30pm, Monday to Friday AEDST.

Suppliers are able to lodge their Petroleum resource rent tax (PRRT) returns / instalments file electronically via the Business Portal or Tax Agent Portal where the data file has been prepared and stored locally.

• 
  authentication (the sender is who they say they are)
  
• 
  confidentiality (the communication can only be read by the intended recipient)
  
• 
  integrity (the transmission cannot be altered without detection while in transit), and
  
• 
  non– repudiation (there is a record of the transmission and content).
  

Access to the portals requires:

• 
  an ABN – apply online at www.abr.gov.au, and
  
• 
  an AUSkey – register online at www.auskey.abr.gov.au.
  

Backup of data

It is the responsibility of the entity to keep effective records as part of their tax reporting obligations. A backup copy of the data sent to the ATO should be kept by either the entity or the supplier, so that the report can be re–submitted if necessary.

4 Data file format

File content

Each file (dataset) must contain the one Supplier data record (page 17) that identifies, among other things, the type of report, the contact name and the address of the supplier of the report.

Only one Supplier data record may be present in each data file.

The first Entity data record (page 18 and 19) contains details of the entity lodging the return/instalment statement. PRRT schedule or transfer forms. It must immediately follow the Supplier data record.

revious details of the current project reported in the Petroleum project 1 data record. If Petroleum project 1 data record is present, Petroleum project 2 data record must also be present and must immediately follow Petroleum project 1 data record. Provide as many Petroleum project 2 data record (s) as required (maximum 999) to report all applicable changes to the entity project.

The File total data record (page 28) must be the last record on the file (dataset) to indicate the end of the data. It contains the total number of records in the data file.

Only one File total data record may be present in each data file.

The sort order of the report data file must be as follows:

• 
  the Supplier data record
  
• 
  then the Entity data record
  
• 
  if required the Petroleum project 1 data record
  
• 
  then Petroleum project 2 data record (s) (maximum 999)
  
• 
  if required the Production licence data record (s) (maximum 999)
  
• 
  if required the Deductible expenditure incurred data record (s)
  
• 
  then the Calculation data record
  
• 
  Declaration data record
  
• 
  if present Transfer interest 1 data record
  
• 
  then Transfer interest 2 data record (S)
  
• 
  then Transfer interest 3 data record (S)
  
• 
  if present the Transfer expenditure 1 data record
  
• 
  then Transfer expenditure 2 data record (s)
  

Repeat the above structure – from Entity information data record – for other Instalment statements / returns being reported on the same file.

If lodging multiple instalment statements or returns for the same project they must appear in the file in chronological order.