Australia

Details

  • Service: Tax, Topics, Tax Reform, Resource Taxation, Federal Budget
  • Industry: Energy & Natural Resources
  • Type: Business and industry issue
  • Date: 14/05/2014

Federal Budget 2014

Federal Budget 2014
KPMG's review of the major implications arising from the 2014 Federal Budget.

Federal Budget contacts

If you would like to discuss the 2014 Federal Budget, please contact your KPMG adviser or one of our KPMG professionals.

Federal Budget 2014 and the Energy & Natural Resources industries 

The past decade has seen the Australian economy ride the wave of capital investment and export success, largely due to a boom in the resource sector. This has ensured the Federal Government has maintained a strong focus on the energy and natural resource industries as part of their annual budget. The 2014 Federal Budget is no different.

This year's budget contained a number of announcements that will have a direct impact on the Energy & Natural Resources (ENR) industries. How these announcements impact an ENR business will depend on how and where the business operates.

 

KPMG provides an analysis of the key implications of the 2014 Federal Budget across the ENR industries.

 

Key insights

  • The Government confirmed its repeal of the Minerals Resource Rent Tax (MRRT) and Carbon Price Mechanism – consider the financial reporting impacts on deferred tax balances.
  • The federal Petroleum Resource Rent Tax (PRRT) remains for offshore and onshore petroleum projects.
  • Junior Australian exploration companies should consider the Exploration Development Incentive (EDI) which will provide a refundable tax offset for greenfields exploration costs from 1 July 2014 – capped at $100 million.
  • The proposed reduction to the company tax rate from 30 percent to 28.5 percent will apply from 1 July 2015. This will be offset by the proposed parental leave levy of 1.5 percent for companies with more than $5 million taxable income – consider the impact on future franking credits.

Federal Budget Brief 2014

KPMG's insights and analysis on the 2014 Federal Budget major implications for Australian business.
 

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 Budget insights

Video: David Linke on Federal Budget and Commission of Audit

Video: David Linke Pre-Budget insights, 2014 Federal Budget
National Corporate Tax Leader, David Linke, sets the scene for how the Commission of Audit may impact the 2014 Federal Budget.

Energy & Natural Resources

KPMG's Energy & Natural Resources team provides services to all key sectors: mining, oil and gas and power and utilities.
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