2013‑2014

The Parliament of the

Commonwealth of Australia

THE SENATE

Presented and read a first time

Mining Subsidies Legislation Amendment (Raising Revenue) Bill 2014

No.      , 2014

(Senator Milne)

A Bill for an Act to amend the law relating to taxation, and for related purposes

Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedule(s)......................................................................................... 2

Schedule 1—Amendments                                                                                                3

Fuel Tax Act 2006                                                                                                       3

Income Tax Assessment Act 1997                                                                              3

A Bill for an Act to amend the law relating to taxation, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Mining Subsidies Legislation Amendment (Raising Revenue) Act 2014.

2  Commencement

                   This Act commences on the day after this Act receives the Royal Assent.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Fuel Tax Act 2006

1  At the end of section 41‑5

Add:

Mining or quarrying operations on or after 1 January 2015

             (4)  Subsection (1) does not apply to taxable fuel that you acquire or manufacture in, or import into, Australia on or after 1 January 2015, to the extent that you do so for use in *carrying on your *enterprise of mining and quarrying operations (within the meaning of the Income Tax Assessment Act 1997).

Income Tax Assessment Act 1997

2  Before paragraph 40‑80(1)(a)

Insert:

                    (aa)  you first use the asset before 1 January 2015; and

3  After subsection 40‑102(4)

Insert:

       (4AA)  Items 2, 4 and 5 to 9 of the table in subsection (4) do not apply to a *depreciating asset that is used in *carrying on *mining and quarrying operations.

4  Subsection 40‑102(5) (table items 1 to 6)

Repeal the items.

5  Application of amendments

The amendments made by items 3 and 4 of this Schedule apply to a depreciating asset if the relevant time mentioned in section 40‑102 of the Income Tax Assessment Act 1997 occurs on or after 1 January 2015.

6  After subsection 40‑730(2)

Insert:

          (2A)  Subsection (1) does not apply to expenditure you incur on or after 1 January 2015.