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Australia: Minerals resource rent tax (MRRT) repealed

06 October 2014   (0 Comments)
Posted by: Author: Peter Collins
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Author: Peter Collins (PwC Australia)

The Australian government has repealed the controversial MRRT and related tax measures.

The 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%.

The 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.

PwC observation:

Taxpayers will need to continue to meet their MRRT obligations until October 1, 2014.

This article first appeared on pwc.com.


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