It's RRT thats been banded around not PRRT, I' sure u meant the former.
AOE wouldn't qualify for the later, as PRRT applies to revenue frm O&G fields in federal waters, not onshore.
AOE for now would simply b paying Corporate tax + 10%(or so) in QLD state royalty.
The new proposal aims at abolishing state royalties & replacing them with a flat 40% RRT, which is ridiculous & would erode into company profits, which is a huge negative & will only boost the federal coffers.
Both, energy & resources sector would suffer frm this incremental tax, as it takes a while for a project to go cash positive.
I guess this suggestion is still in a 'test-ballon phase' which will get shot down by the explorers lobby.
Bigger players like BHP/RIO's etc will cop more & would manage this, but its the juniors that could suffer far more.
Higher taxes etc would naturally eat into profit margins as u've alluded to, altho' the suits in Canberra would b happy.
cheers
AOE Price at posting:
$3.93 Sentiment: None Disclosure: Not Held
