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13 Nov 13 Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 introduced into Parliament

On 13 November 2013, Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 was introduced into the House of Representatives.

The following is extracted from the Explanatory Memorandum.

Schedule 1 to this Bill repeals the Minerals Resource Rent Tax (MRRT) by repealing the:

  • Minerals Resource Rent Tax Act 2012;  
  • Minerals Resource Rent Tax (Imposition—Customs) Act 2012;
  • Minerals Resource Rent Tax (Imposition - Excise) Act 2012; and 
  • Minerals Resource Rent Tax (Imposition - General) Act 2012.


Schedule 1 also makes consequential amendments to other legislation, including the ITAA 1997 and the Taxation Administration Act 1953, required as a result of the repeal of the MRRT.

The Bill also repeals or revises MRRT-related measures. The Bill repeals the following measures:

  • loss-carry back (Schedule 2);
  • geothermal expenditure deduction (Schedule 5);
  • low income superannuation contribution (Schedule 7);
  • the income support bonus (Schedule 8); and
  • schoolkids bonus (Schedule 9).

The Bill also revises the following MRRT-related measures:

  • capital allowances for small business entities (Schedules 3 and 4); and
  • the superannuation guarantee (SG) charge percentage increase (Schedule 6).

In relation to capital allowances, the $6,500 threshold for depreciating assets, costs incurred in relation to depreciating assets, and low pool values under the small business entity capital allowance rules is reduced to $1,000 (returning it to the level it was prior to the changes made by the Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Act 2012). The special rules for certain motor vehicles are also repealed.

In relation to the SG charge, the amendments change the timing of that legislated increase so that the SG charge percentage is maintained at 9.25% for the years starting on 1 July 2014 and 1 July 2015, and increases to 9.5% for the year starting on 1 July 2016.  The SG charge percentage then gradually increases by half a percentage point each year until it reaches 12% for years starting on or after 1 July 2021.

Dates of effect:

The repeal of the loss-carry back measure applies from the start of the 2013-14 income year.

The changes made to the capital allowances for small business entities generally apply on and after 1 January 2014.

The repeal of the geothermal expenditure deduction measure applies on and after 1 July 2014.

The pause in the increase to the SG charge percentage applies to quarters starting on and after 1 July 2014 and ending before 1 July 2016.

The repeal of the low income superannuation contribution applies to concessional contributions for financial years starting on and after 1 July 2013.

The repeal of the income support bonus applies to new instalments of the bonus after Royal Assent. The next instalment of the income support bonus would be paid to recipients in March 2014.

The repeal of the schoolkids bonus applies to new instalments of the bonus after Royal Assent. The next instalment of the schoolkids bonus would be in respect of the bonus test day occurring on 1 January 2014.

 


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