On 23 June 2014 the government introduced into the House of Representatives the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 [No 2].
The 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.
The Bill also makes consequential amendments to other legislation, including the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953, required as a result of the repeal of the MRRT.
The Bill repeals or revises MRRT-related measures. The Bill repeals the following measures:
- loss-carry back
- geothermal expenditure deduction
- low income superannuation contribution
- the income support bonus, and
- schoolkids bonus.
The Bill also revises the following MRRT-related measures:
- capital allowances for small business entities, and
- the superannuation guarantee (SG) charge percentage increase.
Date 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 September 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 July 2014.