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Taxation Administration Act 1953 – Provision of further time for lodgment of the 2014 Minerals Resource Rent Tax (MRRT) Return – Low volume non-payers’ Instrument (No. 1) 2014

Taxation Administration Act 1953 – Provision of further time for lodgment of the 2014 Minerals Resource Rent Tax (MRRT) Return – Low volume non-payers’ Instrument (No. 1) 2014

Administered by Department of the Treasury

Legislation au F2014L00237 Not in force Legislative Instrument

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Taxation Administration Act 1953 –

Provision of further time for lodgment of the 2014 Minerals Resource Rent Tax (MRRT) Return – Low volume non‑payers’ Instrument (No.1) 2014

Explanatory Statement

General Outline of Instrument

This instrument is made under paragraph 117‑5(5)(a) of Schedule 1 to the Taxation Administration Act 1953 (TAA).
The instrument gives entities that are required to lodge an MRRT return for the 2014 MRRT year until the later of 1 December 2014 and the first day of the sixth month after the end of their 2014 MRRT year to lodge that MRRT return if:

they did not pay[1] an MRRT instalment in respect of any instalment quarter during the 2014 MRRT year, and
they were not a major producer as defined in the legislative instrument for the 2014 MRRT year

3. The instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Date of effect

4. The instrument commences on the day after its registration.

What is this instrument about:

5. The purpose of the instrument is to allow entities that are covered by it further time to lodge their 2014 MRRT return in light of the announcement to repeal the MRRT law with effect from 1 July 2014.

What is the effect of this instrument:

6. The effect of this instrument is that entities covered by the instrument are not required to lodge their 2014 MRRT return until 1 December 2014.

7. In the event that the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 passed Parliament and received Royal Assent, it would repeal the MRRT with effect from 1 July 2014. The Commissioner would then give consideration to exempting entities covered by this instrument from having to lodge 2014 MRRT returns because he would have no ongoing need for the information contained in them. This instrument defers the due date for lodgment for entities covered by this instrument and so defers compliance costs in return preparation which may ultimately not need to be incurred if the legislation is repealed and the Commissioner exempts the entities from having to lodge.

8. Compliance cost impact: Low. An assessment of the compliance cost impact indicates that the impact will result in a low overall impact, comprising a low implementation impact and a low decrease in ongoing compliance costs.

Background:

9. Paragraph 117‑5(5)(a) of Schedule 1 to the TAA provides that the Commissioner may, by legislative instrument, determine a further period within which a class of entities may provide an MRRT return for an MRRT year.

10. Returns are an integral part of the administration of taxes that are self‑assessed as they enable entities to inform the Commissioner of their liability to pay MRRT for the MRRT year. While a taxpayer may not be liable to pay MRRT in a particular year, the information contained in the return is important to the Commissioner to inform the Commissioner about that entity. This enables the Commissioner to make administrative decisions, both in relation to the entity itself and more generally about the current and future administration of the tax.

11. However it is also recognised that the requirement to prepare and lodge MRRT returns has an impact on compliance costs for entities.

12. In the event that the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 passed Parliament and received Royal Assent it would repeal the MRRT with effect from 1 July 2014. At that time the MRRT would not have an ongoing operation.

13. To simplify administrative requirements and to make participation in the tax and superannuation systems as easy and seamless as possible, the Commissioner will allow entities covered by this instrument further time to lodge their 2014 MRRT return. This approach aims to ease the costs of compliance for taxpayers who are unlikely to be liable to pay MRRT.

Consultation:

14. Consultation occurred with the Resource Rent Tax Working Group. The working group’s membership includes representatives of the major tax, law and accounting associations, representatives of resource industry associations and the ATO.

15. Wider consultation was not considered necessary given the scope of this instrument, that is it applies to entities who are members of the mining industry, its impact and that it is providing a concession.

Stephanie Martin

Deputy Commissioner of Taxation

6 March 2014

Legislative references:

Minerals Resource Rent Tax Act 2012

Taxation Administration Act 1953

Human Rights (Parliamentary Scrutiny) Act 2011

Legislative Instruments Act 2003

Statement of compatibility with human rights

This statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Taxation Administration Act 1953 – Provision of further time for lodgment of the 2014 Minerals Resource Rent Tax (MRRT) Return – Low volume non‑payers’ Instrument (No.1) 2014

This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of this instrument

This instrument is made under paragraph 117‑5(5)(a) of Schedule 1 to the Taxation Administration Act 1953 (TAA).

The instrument gives entities that are required to lodge an MRRT return for the 2014 MRRT year until the later of 1 December 2014 and the first day of the sixth month after the end of their 2014 MRRT year to lodge that MRRT return if:

they did not pay an MRRT instalment in respect of any instalment quarter during the 2013 MRRT year, and
they were not a major producer as defined in this legislative instrument for the 2013 MRRT year

The government announced in the Treasurer’s Press Release, dated 24 October 2013, that it proposes to repeal the MRRT law with effect from 1 July 2014.

Consultation has been undertaken in determining the further time to allow relevant entities to lodge their 2014 MRRT return.

Human rights implications

This instrument does not engage any of the applicable rights or freedoms as its purpose is to provide for further time for entities to comply with an administrative obligation and is machinery in nature.

Conclusion

This instrument is compatible with human rights as it does not raise any human rights issues.

Stephanie Martin

Deputy Commissioner of Taxation

6 March 2014

[1] The payment of an MRRT instalment requires an entity to pay an amount of money to the Commissioner. An instalment is paid even if the amount concerned is subsequently refunded. A liability to pay an MRRT instalment of a nil amount is not the payment of an MRRT instalment.

Overview

The Taxation Administration Act 1953 (TAA) – Provision of further time for lodgment of the 2014 Minerals Resource Rent Tax (MRRT) Return – Low volume non‑payers’ Instrument (No.1) 2014 was enacted to provide further time for entities to lodge their MRRT returns for the 2014 year in light of the proposed repeal of the MRRT law. The instrument was made under the authority of paragraph 117-5(5)(a) of Schedule 1 to the TAA and is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The instrument allows entities that did not pay an MRRT instalment in respect of any instalment quarter during the 2014 MRRT year and were not a major producer until the later of 1 December 2014 and the first day of the sixth month after the end of their 2014 MRRT year to lodge their MRRT return. The policy objective is to ease the costs of compliance for taxpayers who are unlikely to be liable to pay MRRT and to simplify administrative requirements. Consultation occurred with the Resource Rent Tax Working Group, which includes representatives of the major tax, law and accounting associations, representatives of resource industry associations and the ATO. The instrument is compatible with human rights as it does not raise any human rights issues.

Scope and Application

The Taxation Administration Act 1953 – Provision of further time for lodgment of the 2014 Minerals Resource Rent Tax (MRRT) Return – Low volume non-payers’ Instrument (No.1) 2014 applies to entities that are required to lodge an MRRT return for the 2014 MRRT year but did not pay an MRRT instalment in respect of any instalment quarter during the 2014 MRRT year and were not a major producer as defined in the legislative instrument for the 2014 MRRT year. The instrument provides these entities with additional time to lodge their MRRT return until the later of 1 December 2014 and the first day of the sixth month after the end of their 2014 MRRT year. This instrument extends the application of the TAA by allowing the Commissioner to determine a further period within which a class of entities may provide an MRRT return for an MRRT year under paragraph 117-5(5)(a) of Schedule 1 to the TAA. The instrument is compatible with human rights as it does not raise any human rights issues.

Key Provisions

The Low Volume Non-Payers’ Instrument (No.1) 2014, made under the Taxation Administration Act 1953 (TAA), provides specific provisions for the lodgment of the 2014 Minerals Resource Rent Tax (MRRT) return for certain entities. According to section 1 of the instrument, eligible entities are granted an extended period to lodge their 2014 MRRT return. Specifically, these entities, who did not pay an MRRT instalment during the 2014 MRRT year and were not classified as major producers, have until the later of 1 December 2014 or the first day of the sixth month after the end of their 2014 MRRT year to submit their return (section 1). The instrument imposes certain obligations on the parties it governs. Entities that meet the criteria of not paying an MRRT instalment during the 2014 MRRT year and not being a major producer must ensure they lodge their return by the specified extended due date (section 1). This extension is designed to alleviate compliance costs for entities that are unlikely to be liable for MRRT. Additionally, the Commissioner of Taxation has the discretion to consider exempting these entities from lodgment if the MRRT is repealed and there is no ongoing need for the information contained in the returns (sections 7 and 8). The instrument does not explicitly detail offences or penalties for non-compliance with its provisions. However, under the TAA, failure to comply with administrative requirements could potentially lead to civil or criminal penalties, depending on the nature and extent of the non-compliance. For instance, section 284 of the TAA allows for penalties for failure to provide information or documents, and section 285 allows for penalties for making false or misleading statements. The maximum penalties for these offences can vary significantly, depending on whether the offence is civil or criminal, and whether it is committed negligently or intentionally. In general, the penalties can include fines and, in some cases, imprisonment.

Area of Law: Taxation Law
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Commencement Provisions; Offence Provisions; Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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