The Government on Tue 9.9.2015, announced that it will be recommending to the Governor-General 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 Bill 2014 (which received Royal Asset on 5 September 2014 as Act No 96 of 2014).
As a result, the Government said the Schedules will have the following dates of effect for most taxpayers:
- 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.
Taxpayers with a substituted accounting period may have a different date of effect.
The Government said the above dates are consistent with its 2013 Federal Election commitment, the Exposure Draft to the mining tax repeal legislation, and with the dates announced in November 2013 at the time of the introduction of the first mining tax repeal bill to Parliament.
The Government further added that the tax measures can be reconsidered in the context of the Government’s review into taxation through the Tax White Paper.
The Government said it has consulted with the ATO in relation to the administration of the measures and their dates of effect to ensure that assistance is provided to affected businesses. The ATO has issued a separate media release outlining how this assistance will be provided – key points:
- mining tax repeal– The effect of the repeal is that entities will not accrue further MRRT liabilities from 1 October 2014. The ATO said it will be consulting with industry to implement the administrative approach.
- company loss carry-back provisions – 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 said it will amend the affected assessments and taxpayers will not be subject to penalties and interest if payment is made within a reasonable time.
- small businesses asset write-off concessions – 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 said it does not intend to apply penalties or the shortfall interest charge if taxpayers request to amend their assessments within a reasonable period of time.
The ATO has 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 the measures, if they seek to have their income tax assessments amended in reasonable time. Small businesses can call the ATO for advice about the changes on 13 28 66.
Source: Treasurer and Acting Assistant Treasurer’s joint media release, 9 September 2014; ATO media release, 9 September 2014
[LTN 174, 9/9/14]