Australia: Minerals resource rent tax (MRRT) repealed
06 October 2014
Posted by: Author: Peter Collins
Author: Peter Collins (PwC Australia)
Australian government has repealed the controversial MRRT
and related tax measures.
MRRT, which commenced on July 1, 2012, was designed to be a profits-based tax
on the economic rents from the extraction of taxable resources, such as coal
and iron ore, in Australia. The MRRT ‘profits’ were generally calculated on the
value of the commodity, determined at its first saleable form, less all costs
to that point. The MRRT was imposed at an effective rate of 22.5%.
repeal of the MRRT is expected to have effect from a proclamation date of
October 1, 2014. The Australian Taxation Office has also issued a
media release stating that entities affected will no longer need to accrue
MRRT liabilities from October 1, 2014.
will need to continue to meet their MRRT obligations until October 1, 2014.
This article first appeared on pwc.com.