10 Sep 14 ATO provides advice on MRRT repeal
In a media release issued on 9 September 2014, the ATO has published further advice for taxpayers after the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014 received Royal Assent on 5 September 2014.
The Bill contains measures which will see the repeal of the Minerals Resource Rent Tax (MRRT), the company loss carry-back provisions, reduction of the instant asset write-off, abolition of the accelerated depreciation for motor vehicles and abolition of geothermal energy concessions.
The repeal of the MRRT will be prospective. The effect of the repeal is that entities will not accrue further MRRT liabilities from 1 October 2014. The ATO will be consulting with industry to implement the administrative approach.
The repeal of the company loss carry-back provisions applies from 1 July 2013 for most taxpayers. Companies who have claimed the offset and are now no longer eligible will be contacted by the ATO about their circumstances. The ATO will amend the affected assessments and taxpayers will not be subject to penalties and interest if payment is made within a reasonable time.
The repeal of the provisions allowing small businesses asset write-off concessions apply from 1 January 2014 for most taxpayers. Those taxpayers who have lodged their 2013/14 income year return under the previous law should now seek amendments to reduce their depreciation claim. The ATO does not intend to apply penalties or the shortfall interest charge if taxpayers request amend their assessments within a reasonable period of time.