2nd Sep 2014, 1:51 PM – Senate Minerals Resource Rent Tax Repeal and Other Measures Bill 2014 — Reference to Committee — Adjustments to the changes made by the bill

The majority voted in favour of government amendments, which means that they were successful. The amendments make the following changes. They:

• "further adjust the proposed amended timetable for increasing the superannuation guarantee (SG) charge percentage to 12 per cent by pausing the SG rate at 9.5 per cent for financial years up to and including 2020-21. The SG charge percentage will then increase by half a percentage point each year, until it reaches 12 per cent for years starting on or after 1 July 2025;
• change the repeal date for the low income superannuation contribution (LISC) so that it applies to concessional contributions made for the 2017-18 financial year and later financial years;
• change the repeal date for the income support bonus (ISB) to 31 December 2016 and make minor technical and consequential amendments as a result of the delayed repeal; and
• change the repeal date of the schoolkids bonus (SKB) to 31 December 2016, and apply an income test for payments of the bonus between Royal Assent of the Bill and the new repeal date."(Read more about these amendments here.)

Background to the bill

This bill was introduced following the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 (No. 2) being laid aside because it could not "be progressed in its current form".(Read more about this bill being set aside here. The division which resulted in that bill being laid aside is available here. )

This bill repeals the Minerals Resource Rent Tax as well as related measures such as the low income superannuation contribution, the income support bonus and the schoolkids bonus. The bill also revises the capital allowances for small business entities and the superannuation guarantee charge percentage increase.(Read more about the changes made in the bill in the explanatory memorandum. ) Under the previous Labor government, the superannuation was set to increase to 12 per cent by 2019 (as of 1 July 2014, it is at 9.5 per cent).(Read more about superannuation in Australia here.) However, this bill will push that rise up until 1 July 2025.