On 18 September 2011 the Federal Government released the second exposure draft legislation for the proposed Minerals Resource Rent Tax (MRRT). The MRRT will commence on 1 July 2012 and apply to profits from iron ore and coal projects in Australia.
While the core policy and framework of the legislation remains the same, the second draft contains new provisions in relation to:
- winding down and ending mining project interests;
- pre-mining project interests, including the transfer, splitting and ending of such interests;
- adjustments for change in circumstances;
- starting base adjustments;
- valuation principles, including valuation principles for starting base assets;
- accounting for MRRT, including currency translation and substituted accounting periods;
- integrity measures in relation to anti-avoidance and profit shifting; and
- consolidated groups.
The first exposure draft was incomplete and had flagged the inclusion of many of the above concepts in future drafts of the legislation.
The Government has invited the public to make written submissions and comments on the second exposure draft. Submissions must be made by 5 October 2011.
Copies of the second exposure draft legislation and explanatory memorandum can be obtained from the Treasury website.
We will keep you updated as developments occur. In the meantime, should you require assistance with the preparation of a written submission or any further information in relation to the potential impact of the MRRT on your business, please contact us.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
