Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon J. B. Hockey MP)General outline and financial impact
Mining rights and information
Schedule 1 to this Bill amends the capital allowances provisions in the Income Tax Assessment Act 1997 to limit immediate deductibility of expenditure on mining rights and mining information.
Date of effect: This measure applies to transactions to acquire mining rights and mining information entered into after 7.30 pm Australian Eastern Standard Time, 14 May 2013.
Proposal announced: The former government announced this measure in the 2013-14 Budget on 14 May 2013. The Treasurer announced that the Commonwealth Government would proceed with this measure in the Treasurer's Media Release of 6 November 2013.
Financial impact: This measure will have the following revenue implications:
| 2014-15 | 2015-16 | 2016-17 | 2017-18 |
| $500m | $350m | $250m | $250m |
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human
Rights - Chapter 1, paragraphs 1.62 to 1.65.
Compliance cost impact: Minor.