House of Representatives
Minerals Resource Rent Tax Repeal and Other Measures Bill 2014
Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon J. B. Hockey MP)Financial impact
Repeal of the Minerals Resource Rent Tax and repeal and rephasing of related measures
The estimated financial impact over the forward estimates period from the repeal of the Minerals Resource Rent Tax (MRRT) and the repeal or revision of MRRT-related measures contained in this Bill is [1] :
| Measure |
2014-15
$m |
2015-16
$m |
2016-17
$m |
2017-18
$m |
Total
$m |
| Repeal of MRRT [2] | -130.9 | -180.2 | -178.7 | -178.7 | -668.5 |
| Discontinuing company loss carry-back | 350.0 | 300.0 | 300.0 | 350.0 | 1,300.0 |
| Reduction of instant asset write-off threshold from $5,000 to $1,000 [3] | 500.0 | 900.0 | 900.0 | 900.0 | 3,200.0 |
| Discontinuing vehicle accelerated depreciation | 100.0 | 200.0 | 150.0 | 100.0 | 550.0 |
| Amending geothermal exploration treatment | - | 5.0 | 5.0 | 5.0 | 15.0 |
| Rephasing the superannuation guarantee increase [4] | - | 385.0 | 845.0 | 1,370.0 | 2,600.0 |
| Abolishing the low income superannuation contribution | 836.1 | 941.1 | 923.3 | 915.4 | 3,615.9 |
| Abolishing the income support bonus | 323.8 | 314.3 | 316.4 | 324.0 | 1,278.5 |
| Abolishing the school kids bonus | 655.4 | 1,322.1 | 1,342.0 | 1,375.6 | 4,695.1 |
| Net impact | 2,634.4 | 4,187.3 | 4,603.0 | 5,161.3 | 16,586.0 |