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)

The estimated financial impact assumes proclamation occurs by the end of 2014 except in relation to the MRRT which does not include any revenue that may be received between 1 July 2014 and proclamation.

Forgone MRRT revenue has been re-costed to reflect the latest estimate, which takes into account recent instalment data and the current forward estimates period. This change represents a downward revision normally captured as an estimates variation.

The increase in the instant asset write-off threshold from $5,000 to $6,500 was intended to be funded by revenue expected from the carbon tax. The financial impact of the reduction of the part of the threshold associated with the carbon tax from $6,500 to $5,000 results in a gain to revenue of $350m over the forward estimates period, comprising $50m in 2014-15, $150m in 2015-16, $100m in 2016-17 and $50m in 2017-18.

The costing for this measure includes the changes as announced in the 2013-14 MYEFO and the 2014-15 Budget.

Connelly, E. 2007, 'The Effect of the Australian Superannuation Guarantee on Household Saving Behaviour', Research Discussion Paper 2007-08, Reserve Bank of Australia.

See tax expenditure B109 in Tax Expenditures Statement 2012 (published in January 2013).

Pages 35-40.

The response was published at Appendix 2 to the report. and the Committee commented at pages 51-53.

Committee on Economic, Social and Cultural Rights, General Comment No. 19, 'The right to social security (art 9)', paragraph 9.

Ibid, paragraph 42.

Senate Education, Employment and Workplace Relations References Committee, 'The adequacy of the allowance payment system for jobseekers and others, the appropriateness of the allowance payment system as a support into work and the impact of the changing nature of the labour market', November 2012; Joint Parliamentary Committee on Human Rights inquiry into the Social Security Legislation Amendment (Fair Incentives to Work) Bill 2012.

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