Australian Lawmakers Back Retroactive Petroleum Tax Law Change

Australian lawmakers have backed a government plan to narrow mining exploration tax claims despite strong opposition from the oil and gas sector.

Senators said they supported a government tax bill that would annul a Federal Court decision which awarded Shell Energy Holdings Australia Ltd. an immediate tax deduction of A$2.3 billion ($1.5 billion), in a cross-party report released today.

Amendments to the Petroleum Resources Rent Tax and income tax assessment laws would roll back the court’s ruling by excluding tax deductions for the costs of assessing the commercial value of developing a resource.

• Tax and legal bodies have said ...