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Australian Senate Approves Repeal of Mineral Resource Rent Tax — Orbitax Tax News & Alerts

On 2 September 2014, the Australian Senate approved a bill repealing the country's Mineral Resource Rent Tax (mining tax). The bill now goes to the House of representatives where it is expected to pass.

The mining tax was put in place in 2012 at a rate 30% on mining profits of coal and iron ore. Measures attached to the original implementation of the mining tax will be phased out, including:

  • The low income superannuation contribution will be abolished from 1 July 2017
  • The income support bonus will be abolished from 31 December 2016
  • The schoolkids bonus will be abolished from 31 December 2016

Compulsory superannuation employer contributions, which were set to increase, will remain fixed at 9.5% until 1 July 2021, and will then increase 0.5% per year until reaching 12% in 2025.