Repeal of the Mineral Resource Rent Tax
Recently the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014 received Royal Assent. Amongst other things, this Bill repeals various measures brought in by the previous Labor government including:
- Abolition of the mining tax from 1 October 2014;
- Abolition of the company loss carry-back from 1 July 2013;
- Reduction of the instant asset write-off from 1 January 2014; and
- Abolition of accelerated depreciation for motor vehicles from 1 January 2014.
Companies who have claimed the company loss carry-back will be contacted by the ATO about their circumstances. The ATO will amend the affected returns and the companies will not be subject to penalties or interest provided the amounts due are paid within a reasonable timeframe.
Those taxpayers who have lodged their 2014 tax returns and have made incorrect depreciation claims should lodge an amendment to the 2014 return as soon as possible. The ATO will not apply penalties or interest if the amendment is lodged within a reasonable timeframe.
Please contact Billings & Ellis if you should have any questions as to the above tax changes.
