The Australian Government is seeking feedback on the Laminaria-Corallina decommissioning levy exposure draft.
In May 2021, the Federal Government announced it will introduce a temporary levy on offshore petroleum production to fund decommissioning and remediation works on the Laminaria-Corallina oilfields and associated infrastructure.
The Government states that imposition of the levy is to ensure taxpayers are not left to pay for the decommissioning and remediation of the oilfields, located northwest of Darwin in the Timor Sea.
The levy is intended to 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 being sought on the exposure draft legislation. Submissions can be made on the Treasury website. Submissions close 23 September 2021.