Senator the Hon. Mathias Cormann
Minister for Finance
The Government has delivered on its election commitment to repeal the failed Minerals Resource Rent Tax (mining tax), with the Bill receiving Royal Assent on Friday, September 5 2014.
The Government can today announce that it will be recommending to the Governor-General, His Excellency General the Honourable Sir Peter Cosgrove AK MC (Retd), that he affix by way of proclamation, 30 September 2014 as the commencement date for Schedules 1 to 5 to the Minerals Resource Rent Tax Repeal and Other Measures Act 2014. As a result the Schedules will have the following dates of effect for most taxpayers1:
- Schedule 1 - Abolition of the mining tax from 1 October 2014 (with taxpayers final MRRT year (even if it is a part year) ending on 30 September 2014);
- Schedule 2 - Abolition of the company loss carry-back from 1 July 2013;
- Schedule 3 - Reduction of the instant asset write-off from 1 January 2014;
- Schedule 4 - Abolition of accelerated depreciation for motor vehicles from 1 January 2014; and
- Schedule 5 - Abolition of geothermal energy concessions from 1 July 2014.
The dates above are consistent with the Government's 2013 Federal Election commitment, the Exposure Draft to the mining tax repeal legislation2, and with the dates announced in November last year at the time of the introduction of the first mining tax repeal bill to Parliament3. This is also consistent with the costings presented with subsequent bills.
The Government has consulted with the Australian Taxation Office (ATO) in relation to the administration of these measures and their dates of effect to ensure that assistance is provided to affected businesses.
The ATO has outlined how this assistance will be provided in the attached media release from the Commissioner of Taxation.
Consistent with the policy the Government took to the last election and ATO advice provided to the Government, the relevant start dates have been outlined by the ATO and advised to taxpayers from as early as 8 November 20134.
The ATO has further advised the Government that it will waive all penalties and interest in instances where taxpayers have chosen not to prepare their returns on the basis of the Government's announcement of these measures, if they seek to have their income tax assessments amended in reasonable time.
These tax measures can be reconsidered in the context of the Government's review into taxation through the Tax White Paper.
Abolishing the complete mining tax package will save the Budget around $50 billion over the next decade.
Gemma Daley: 0418 148821
Karen Wu: 0428 350139
- Taxpayers with a substituted accounting period may have a different start date.
- Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 introduced on 13 November 2013, the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 [No. 2] introduced on 23 June 2014, and the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014 introduced on 1 September 2014.
- Repeal of the mining tax: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Repeal-the-minerals-resource-rent-tax-law/;
Abolition of company loss carry-back: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Company-loss-carry-back-repeal/;
Reduction of the instant asset write-off: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Instant-asset-write-off-and-simplified-depreciation;
Abolition of accelerated depreciation for motor vehicles: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Accelerated-initial-deduction-for-motor-vehicles/;
Abolition of geothermal energy concessions: https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Repeal-of-MRRT-and-related-measures/Repeal-of-the-deductibility-of-geothermal-energy-exploration-expenditure/