Minerals Resource Rent Tax Repeal and Other Measures Bill 2013

The Federal Government released an exposure draft of the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 and explanatory memorandum for public consideration on the 24 October. The draft bill proposes to remove the Minerals Resource Rent Tax (MRRT) with effect from 1 July 2014. The Bill also discontinues or re-phases the measures that were intended to be funded by the MRRT.

The Government found that the MRRT imposed a significant regulatory and compliance burden on the iron ore and coal mining industries, which was exacerbated by its complex design. Prior to the introduction of the MRRT, iron ore and coal miners were already subject to the relevant State royalty arrangements as well as to Commonwealth income tax.

The draft bill, when enacted, will repeal the Minerals Resource Rent Tax Act 2013 as well as other MRRT Imposition Acts. The repeal will apply from the 1 July 2014. As a result, taxpayers do not accrue any further MRRT liabilities on or after this date. It also means that rehabilitation tax offsets are only available in relation to MRRT years ending on or before 30 June 2014.

Parliament is currently scheduled to sit on the 12 November 2013 to begin debating this and other tabled bills for discussion. 

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