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Minerals Resource Rent Tax Repeal and Other Measures Bill 2013

Schedule 1 Minerals resource rent tax

Part 1 Repeals

Minerals Resource Rent Tax Act 2012

1  The whole of the Act

Repeal the Act.

Minerals Resource Rent Tax (Imposition—Customs) Act 2012

2  The whole of the Act

Repeal the Act.

Minerals Resource Rent Tax (Imposition—Excise) Act 2012

3  The whole of the Act

Repeal the Act.

Minerals Resource Rent Tax (Imposition—General) Act 2012

4  The whole of the Act

Repeal the Act .

Part 2 Consequential amendments

Administrative Decisions (Judicial Review) Act 1977

5  Paragraph (e) of Schedule 1

Omit:

Minerals Resource Rent Tax Act 2012

6  Paragraph (e) of Schedule 1

Omit “, 3-15”.

A New Tax System (Goods and Services Tax) Act 1999

7  Paragraph 177-12(4)(h)

Omit “ 1987 ; or”, substitute “ 1987 .”.

8  Paragraph 177-12(4)(i)

Repeal the paragraph.

Crimes (Taxation Offences) Act 1980

9  Subsection 3(1) (definition of MRRT )

Repeal the definition.

10  Subsection 3(1) (definition of MRRT law )

Repeal the definition.

11  Part II (paragraph (i) of note to Part heading)

Omit “Part X);”, substitute “Part X).”.

12  Part II (paragraph (j) of note to Part heading)

Repeal the paragraph.

13  Part XI

Repeal the Part.

Income Tax Assessment Act 1997

14  Section 10-5 (table item headed “minerals resource rent tax”)

Repeal the item.

15  Section 12-5 (table item headed “capital allowances”)

Omit:

Minerals Resource Rent Tax..............................................

40-751

16  Section 15-85

Repeal the section.

17  Section 40-725

Omit:

•      paying minerals resource rent tax; and

18  Section 40-751

Repeal the section.

19  Subsection 703-50(1) (note 2)

Repeal the note.

20  Subsection 719-50(1) (note 2)

Repeal the note.

21  Subsection 721-10(2) (table items 75, 80 and 85)

Repeal the items.

22  Subsection 721-10(4)

Repeal the subsection.

23  Subsection 721-10(6)

Omit “subsections (4) and (5)”, substitute “subsection (5)”.

24  Subsection 721-10(6)

Omit “those subsections”, substitute “that subsection”.

25  Subsection 721-25(1AA)

Repeal the subsection.

26  Subsections 721-25(1B), (2) and (3)

Omit “, (1A) and (1AA)”, substitute “and (1A)”.

27  Section 960-265 (table item 14)

Repeal the item.

28  Subsection 995-1(1)

Repeal the following definitions:

                     (a)  definition of allowance component ;

                     (b)  definition of applicable instalment rate ;

                     (c)  definition of arm’s length consideration .

29  Subsection 995-1(1) (definition of base value )

Repeal the definition, substitute:

base value , of a * depreciating asset, has the meaning given by subsection 40-70(1).

30  Subsection 995-1(1) (paragraph (b) of the definition of base year )

Omit “ 1953 ; and”, substitute “ 1953 .”.

31  Subsection 995-1(1) (paragraph (c) of the definition of base year )

Repeal the paragraph.

32  Subsection 995-1(1) (definition of benchmark instalment rate )

Repeal the definition, substitute:

benchmark instalment rate has the meaning given by sections 45-360 and 45-530 in Schedule 1 to the Taxation Administration Act 1953 .

33  Subsection 995-1(1) (paragraph (c) of the definition of hold )

Omit “section 420-12; and”, substitute “section 420-12.”.

34  Subsection 995-1(1) (paragraph (d) of the definition of hold )

Repeal the paragraph.

35  Subsection 995-1(1) (note at the end of the definition of hold )

Repeal the note.

36  Subsection 995-1(1) (definition of instalment income )

Repeal the definition, substitute:

instalment income has the meaning given by sections 45-120, 45-260, 45-280, 45-285, 45-286 and 45-465 in Schedule 1 to the Taxation Administration Act 1953 .

37  Subsection 995-1(1) (definition of instalment quarter )

Repeal the definition, substitute:

instalment quarter has the meaning given by section 45-60 in Schedule 1 to the Taxation Administration Act 1953 .

38  Subsection 995-1(1)

Repeal the following definitions:

                     (a)  definition of miner ;

                     (b)  definition of mining expenditure ;

                     (c)  definition of mining loss ;

                     (d)  definition of mining profit ;

                     (e)  definition of mining project interest ;

                      (f)  definition of mining project split ;

                     (g)  definition of mining project transfer ;

                     (h)  definition of mining revenue ;

                      (i)  definition of mining revenue event ;

                      (j)  definition of MRRT ;

                     (k)  definition of MRRT allowance ;

                      (l)  definition of MRRT law ;

                    (m)  definition of MRRT liability ;

                     (n)  definition of MRRT payable ;

                     (o)  definition of MRRT return ;

                     (p)  definition of MRRT year .

39  Subsection 995-1(1)

Insert:

petroleum resource rent tax amount means any debt or credit that arises directly under the * petroleum resource rent tax provisions.

40  Subsection 995-1(1)

Insert:

petroleum resource rent tax provisions means the * petroleum resource rent tax law, other than * BAS provisions.

41  Subsection 995-1(1)

Repeal the following definitions:

                     (a)  definition of pre-mining expenditure ;

                     (b)  definition of pre-mining project interest ;

                     (c)  definition of pre-mining revenue ;

                     (d)  definition of rehabilitation tax offset ;

                     (e)  definition of resource rent tax amount ;

                      (f)  definition of resource rent tax provisions ;

                     (g)  definition of split percentage ;

                     (h)  definition of starting base asset ;

                      (i)  definition of starting base return .

42  Subsection 995-1(1) (definition of start time )

Repeal the definition, substitute:

start time of a * depreciating asset has the meaning given by section 40-60.

43  Subsection 995-1(1) (definition of taxable mining profit )

Repeal the definition.

44  Subsection 995-1(1) (definition of taxable resource )

Repeal the definition.

45  Subsection 995-1(1) (definition of termination value )

Repeal the definition, substitute:

termination value has the meaning given by section 40-300.

Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012

46  Schedule 4

Repeal the Schedule.

Petroleum Resource Rent Tax Assessment Act 1987

47  Section 2 (note at the end of paragraph (b) of the definition of exploration permit )

Repeal the note, substitute:

Note:       An authority or right may not be covered by this paragraph because it is the subject of a determination of the Resources Minister under section 2AA, or because the activities relating to petroleum are only incidental to the activities relating to other resources (see section 2AC).

48  Section 2 (definition of petroleum )

Omit “However, petroleum does not include a taxable resource within the meaning of the Minerals Resource Rent Tax Act 2012 .”.

49  Section 2 (note at the end of paragraph (c) of the definition of production licence )

Repeal the note, substitute:

Note:       An authority or right may not be covered by this paragraph because it is the subject of a determination of the Resources Minister under section 2AA, or because it is limited to the incidental recovery of coal seam gas (see section 2AB).

50  Section 2 (note at the end of paragraph (b) of the definition of retention lease )

Repeal the note, substitute:

Note:       An authority or right may not be covered by this paragraph because it is the subject of a determination of the Resources Minister under section 2AA, or because the activities relating to petroleum are only incidental to the activities relating to other resources (see section 2AC).

51  After section 2AA

Insert:

2AB   Exclusion of incidental recovery of coal seam gas

             (1)  An authority or right under an Australian law is taken, for the purposes of this Act (other than this section), not to be an authority or right mentioned in paragraph (c) of the definition of production licence in section 2 if the only recovery of petroleum that is undertaken under the authority or right is recovery of coal seam gas, being recovery that:

                     (a)  is a necessary result of coal mining that the holder of the authority or right carries out under the authority or right; or

                     (b)  is necessary to ensure a safe working environment for coal mining carried out under the authority or right; or

                     (c)  is necessary to minimise the fugitive emission of methane or similar gases during the course of coal mining carried out under the authority or right.

             (2)  This section does not apply to an authority or right that is the subject of a determination under subsection 2AA(1).

2AC   Exclusion of incidental exploration etc. for petroleum

                   An authority or right under an Australian law is taken, for the purposes of this Act (other than this section), not to be:

                     (a)  an authority or right mentioned in paragraph (b) of the definition of exploration permit in section 2; or

                     (b)  an authority or right mentioned in paragraph (b) of the definition of retention lease in that section;

if, to the extent that the authority or right permits activities of a kind mentioned in a subparagraph of that paragraph, it only permits them as an incident of exploration for resources other than petroleum.

52  After subsection 37(2)

Insert:

          (2A)  Despite subsection (1), if:

                     (a)  a payment made by a person would, apart from this subsection, be exploration expenditure incurred by the person in relation to a petroleum project; and

                     (b)  the person holds, under an Australian law, an authority or right (however described) that permits activities relating to resources other than petroleum to be carried on in the eligible exploration or recovery area in relation to the project;

the payment is taken, for the purposes of this Act, to be exploration expenditure only to the extent that it would be reasonable to conclude that the purpose of the payment is exploring for petroleum in order to obtain a commercial return from petroleum.

          (2B)  An authority or right referred to in paragraph (2A)(b) may be a production licence, exploration permit or retention lease, including a production licence to which the petroleum project relates.

          (2C)  Subsections (2A) and (2B) are to avoid doubt, and do not extend by implication the scope of subsection (1).

Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013

53  Item 169 of Schedule 7

After “any of the”, insert “petroleum”.

Taxation Administration Act 1953

54  Subsection 3B(1C)

Omit “sections 3D and 3E,”, substitute “section 3E,”.

55  Section 3D

Repeal the section.

56  Subsection 8AAB(4) (table items 19A, 45A and 45B)

Repeal the items.

57  Subparagraph 8AAZLG(1)(b)(ii)

After “any of the”, insert “petroleum”.

58  Paragraph 8AAZLH(1)(b)

After “any of the”, insert “petroleum”.

59  Section 14ZQ (definition of starting base assessment )

Repeal the definition, substitute:

starting base assessment has the meaning given by clause 23 of Schedule 2 to the Petroleum Resource Rent Tax Assessment Act 1987 .

60  Subsections 14ZW(1AB) and (1AC)

Repeal the subsections.

61  Paragraph 11-1(g) in Schedule 1

Repeal the paragraph.

62  Paragraphs 12-330(1)(b) and 12-335(2)(a) in Schedule 1

Omit “, * MRRT”.

63  Subsection 18-10(3) in Schedule 1 (notes 1 and 2)

Repeal the notes, substitute:

Note:          Section 18-55 provides a credit for amounts withheld in respect of petroleum resource rent tax.

64  Group heading before section 18-49 in Schedule 1

Repeal the heading.

65  Section 18-49 in Schedule 1

Repeal the section.

66  Part 3-15 in Schedule 1

Repeal the Part.

67  Paragraph 155-5(2)(e) in Schedule 1

Repeal the paragraph.

68  Subsection 155-15(1) in Schedule 1 (table item 4)

Repeal the item.

69  Subsection 155-30(3) in Schedule 1

Repeal the subsection, substitute:

             (3)  This section does not apply if the * assessable amount is the * Division 293 tax payable by you in relation to an income year in relation to your * taxable contributions for the income year.

70  Section 155-55 in Schedule 1 (heading)

Repeal the heading, substitute:

155-55   Amendment to give effect to certain anti-avoidance declarations

71  Paragraph 155-55(b) in Schedule 1

Omit “declarations); or”, substitute “declarations).”.

72  Paragraph 155-55(c) in Schedule 1

Repeal the paragraph.

73  Section 155-55 in Schedule 1

Omit “or determination”.

74  Section 155-57 in Schedule 1

Repeal the section.

75  Subsection 155-90(1) in Schedule 1

Omit “(1)”.

76  Subsection 155-90(2) in Schedule 1

Repeal the subsection.

77  Subsection 250-10(2) in Schedule 1 (table items 39C, 39D and 136)

Repeal the items.

78  Section 280-1 in Schedule 1

Omit “minerals resource rent tax,”.

79  Section 280-50 in Schedule 1

Omit “ * MRRT,”.

80  Section 280-101 in Schedule 1

Repeal the section.

81  Paragraph 280-105(1)(a) in Schedule 1

Omit “ * MRRT,”.

82  Subsection 280-110(1) in Schedule 1

Omit “280-101,”.

83  Section 280-170 in Schedule 1

Omit “ * MRRT,”.

84  Section 284-30 in Schedule 1 (note)

Repeal the note.

85  Section 284-35 in Schedule 1 (note)

Repeal the note.

86  Paragraph 284-75(2)(a) in Schedule 1

Omit “ * MRRT law or”.

87  Paragraph 284-75(2)(b) in Schedule 1

Omit “MRRT law or”.

88  Subsection 284-80(1) in Schedule 1 (table items 3 and 4)

Omit “, the * MRRT law”.

89  Subsection 284-80(1) in Schedule 1 (table item 4)

Omit “, the MRRT law”.

90  Subsection 284-90(1) in Schedule 1 (cell at table item 4, column headed “In this situation:”)

Repeal the cell, substitute:

You have a * shortfall amount, all or part of which resulted from you or your agent treating an * income tax law or the * petroleum resource rent tax law as applying to a matter or identical matters in a particular way that was not * reasonably arguable, and that amount is more than your * reasonably arguable threshold.

91  Paragraph 284-90(3)(a) in Schedule 1

Repeal the paragraph, substitute:

                     (a)  unless paragraph (b) applies—the greater of $10,000 or 1% of whichever of the following applies:

                              (i)  the income tax payable by the entity for the income year, worked out on the basis of the entity’s * income tax return;

                             (ii)  the * petroleum resource rent tax payable by the entity for the year of tax (within the meaning of the Petroleum Resource Rent Tax Assessment Act 1987 ) most closely corresponding to the income year, worked out on the basis of the entity’s return under Division 1 of Part VI of that Act; or

92  Subsection 286-75(2AA) in Schedule 1

Repeal the subsection.

93  Paragraph 286-80(2)(a) in Schedule 1

Omit “(2AA),”.

94  Paragraph 350-5(b) in Schedule 1

Repeal the paragraph.

95  Section 352-1 in Schedule 1

Omit “and the MRRT law”.

96  Subdivision 352-B in Schedule 1

Repeal the Subdivision.

97  Subparagraphs 353-10(1)(a)(ii), (b)(ii) and (c)(ii) in Schedule 1

Repeal the subparagraphs.

98  Section 353-15 in Schedule 1 (heading)

Repeal the heading, substitute:

353-15   Access to premises for the purposes of the indirect tax laws and the Division 293 tax law

99  Subsection 353-15(1) in Schedule 1

Omit “, the * MRRT law”.

100  Section 353-17 in Schedule 1

Repeal the section.

101  Subsection 355-50(1) in Schedule 1 (note 2)

Omit “, 3D”.

102  Paragraph 357-55(faa) in Schedule 1

Repeal the paragraph.

103  Subsection 360-5(1) in Schedule 1

Omit “(other than a provision about * MRRT)”.

104  Subsection 444-5(1) in Schedule 1

Omit “, the * MRRT law”.

105  Subsections 444-5(1A) and (1B) in Schedule 1

Repeal the subsections.

106  Subsection 444-5(2) in Schedule 1

Omit “, the * MRRT law”.

107  Subsections 444-10(1) and (2) in Schedule 1

Omit “and the * MRRT law”.

108  Subsection 444-10(3) in Schedule 1

Omit “or the * MRRT law”.

109  Subsection 444-10(5) in Schedule 1

Omit “and the * MRRT law”.

110  Section 444-15 in Schedule 1

Omit “or the * MRRT law”.

111  Subsections 444-30(1), (2) and (3) in Schedule 1

Omit “, the * MRRT law”.

112  Subsections 444-70(1) and (2) in Schedule 1

Omit “or the * MRRT law”.

113  Subdivision 444-F in Schedule 1

Repeal the Subdivision.

Taxation (Interest on Overpayments and Early Payments) Act 1983

114  Subsection 3(1) (paragraph (d) of the definition of decision to which this Act applies )

Omit “or 160”.

115  Subsection 3C(1)

Omit “(1) In”, substitute “In”.

116  Subsection 3C(1) (table item 160)

Repeal the item.

117  Subsection 3C(2)

Repeal the subsection.

118  Section 12AA (heading)

Repeal the heading, substitute:

12AA   Entitlement to interest for RBA surpluses after notification of BAS amount or petroleum resource rent tax amount

119  Paragraph 12AA(a)

Before “resource rent tax amount”, insert “petroleum”.

120  Section 12AA (note)

Before “ resource rent tax amount ”, insert “ petroleum ”.

121  Paragraph 12AB(a)

Before “resource rent tax amount”, insert “petroleum”.

122  Section 12AB (note)

Before “ resource rent tax amount ”, insert “ petroleum ”.

123  Paragraph 12AC(b)

Before “resource rent tax amount”, insert “petroleum”.

124  Section 12AC (note)

Before “ resource rent tax amount ”, insert “ petroleum ”.

125  Section 12AF

Insert:

petroleum resource rent tax amount has the same meaning as in subsection 995-1(1) of the Tax Act.

126  Section 12AF (definition of resource rent tax amount )

Repeal the definition.

Part 3 General transitional provisions

127  Objects

The objects of this Part are:

                     (a)  to provide for the winding-up of the minerals resource rent tax; and

                     (b)  to ensure the administration, collection and recovery of the minerals resource rent tax for the MRRT years ending on or before 30 June 2014; and

                     (c)  to continue taxpayers’ rights and obligations relating to MRRT years ending on or before 30 June 2014.

128  Effect of repeals and amendments on preceding MRRT years

Despite the repeals and amendments made by this Schedule, the Acts amended or repealed continue to apply, after the commencement of this Schedule, in relation to any MRRT year ending on or before 30 June 2014 as if those repeals and amendments had not happened.

129  Provisions of Part 4 may override this Part

The provisions of this Part have effect subject to the provisions of Part 4.

Part 4 Specific transitional provisions

130  Substituted accounting periods

If:

                     (a)  an entity has, under section 18 of the Income Tax Assessment Act 1936 , accounting periods that are not financial years; and

                     (b)  one of those accounting periods started before 1 July 2014 and ends after that day;

the period starting at the beginning of that accounting period and ending on 30 June 2014 is treated as an MRRT year for the purposes of the Minerals Resource Rent Tax Act 2012 as it continues to apply because of Part 3 of this Schedule.

Note 1:    Section 190-20 of the Minerals Resource Rent Tax Act 2012 (to the extent that it continues to apply because of Part 3 of this Schedule) will adjust threshold amounts under that Act in relation to that MRRT year.

Note 2:    Subsection 115-110(2) in Schedule 1 to the Taxation Administration Act 1953 (to the extent that it continues to apply because of Part 3 of this Schedule) will adjust instalment quarters under that Act in relation to that MRRT year.

131  Continuation of Commissioner’s power to make certain legislative instruments

(1)       Despite the repeal by this Act of section 117-5 in Schedule 1 to the Taxation Administration Act 1953 , the Commissioner’s power under subsection 117-5(5) in that Schedule to make legislative instruments continues after that repeal.

(2)       This item does not affect any other powers of the Commissioner under Schedule 1 to the Taxation Administration Act 1953 , as it continues to apply because of Part 3 of this Schedule.