The Mining Tax repeal and the impact to small business

The legislation to repeal the Minerals Resource Rent Tax passed the Senate today along with a series of concessions funded by the mining tax. Many of the small business related measures were repealed, without amendment.

These include:

  • The company loss carry back rules
  • The instant asset write off threshold of $6,500 under the simplified depreciation rules
  • Accelerated deduction of $5,000 for motor vehicles

To remove the mining tax and the associated concessions, the Government relented on a series of the measures that formed part of the original Bill, including:

  • Re-phasing of the superannuation guarantee. The superannuation guarantee will now remain at 9.5% until 30 June 2020, and then increase by 0.5% each year beginning 1 July 2020 until the rate reaches 12% on 1 July 2025
  • Changing the repeal date of the school-kids bonus to 31 December 2016 and applying an additional means test (adjusted taxable income of $100,000 or less) between Royal Assent and the repeal date
  • Changing the repeal date for the low income superannuation contribution so that it will cease to apply to concessional contributions made for the 2017-2018 financial year and later financial years
  • Changing the repeal date for the income support bonus to 31 December 2016