The ATO has recently published advice on the repeal of the minerals resource tax repeal and other measures bill 2014.
The Bill contains measures which will see the repeal of the company loss carry-back provisions, reduction of the instant asset write-off, abolition of the accelerated depreciation for motor vehicles and abolition of geothermal energy concessions.
The ATO understands that the Government intends to recommend to the Governor-General to fix 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 following are the dates of the effect for most taxpayers:
- Schedule 1 -Abolition of the mining tax from 1 October 2014 with taxpayers final MRRT year (even if it is 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.
- Schedule 5 -Abolition of geothermal energy concessions from 1 July 2014.
What this means for your business is that, the repeal of the MRRT will be prospective. The effect of the repeal is that entities will not accrue further MRRT liabilities from 1 October 2014.
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 will amend the affected assessments and taxpayers will not be subject to penalties and interest if payment is made within a reasonable time.
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 does not intend to apply penalties or shortfall interest charges if taxpayers request amend their assessments within a reasonable period of time.
If you have any queries on the MRRT repeal and how it affects your specific situation concerning tax, please don’t hesitate to get in touch with the team at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
In addition, for further information on the MRRT repeal look at the ATO website that provides more details.
