Australia

Details

  • Service: Tax, Topics, Tax Reform, Resource Taxation
  • Industry: Energy & Natural Resources, Mining
  • Type: Regulatory update
  • Date: 5/11/2013

Tax Insights

KPMG's analysis of tax issues and developments.

Jenny Wong

Jenny Wong
Director, Tax

+61 2 9335 8661

jywong@kpmg.com.au

MRRT repeal – Fate has kissed us big time 

by Jenny Wong, Australian Tax Centre

For those who like to be entertained with razor sharp satirical sketches in Australian current affairs, Whoops! The Wharf Revue 2013 is for you, now showing at the Sydney Theatre Company until 21 December. A Federal Election year ensures the show delivers on side splitting skits with drama and musical hilarity of familiar numbers from The Addams Family, The Wizard of Oz and Titanic. And believe me, some of the sketches will leave you in tears from laughter.

The most memorable sketch, which is highlighted in the trailer to The Wharf Revue 2013, is a satirical duet rendition between actors Jonathan Biggins and Drew Forsythe to Titanic’s My Heart Will Go On, on Australian mining, starting with lyrics: “Fate has kissed us big time…”

 

And this complements the release of draft legislation on 24 October to repeal the mineral resource rent tax (MRRT) from 1 July 2014. Associated measures that were intended to be funded by the MRRT contained in the same package of measures will also be removed or rephased including:

 

  • repeal of loss carry back provisions
  • reduction in the small business instant asset write off threshold
  • repeal of accelerated depreciation for motor vehicles
  • repeal of the geothermal exploration provisions
  • re-phasing of the increase in the superannuation contribution rate from 9 to 12 percent (delayed 2 years)
  • repeal of the schoolkids bonus.

 

With all these measures included in the same legislation, it is unlikely to pass the Labor and Greens controlled Senate before 1 July 2014. Instead, passage of legislation will have to wait until after 1 July 2014 when the composition of the Senate will change with likely supporters of this repealing legislation.

 

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