Submission to the Senate Economics Legislation Committee

The Minerals Council of Australia welcomes the opportunity to comment on schedule 4 of the Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill 2014 (the bill) to align Fuel Tax Credits (FTCs) with the increased rate of fuel excise and excise-equivalent customs duty.

The minerals industry supports the timely passage of schedule 4 of the bill. Aligning FTCs with the increased rate of fuel excise will ensure that the FTC scheme continues to meet its policy objective to remove excise from a key business input and remote community electricity generation.

A stable FTC scheme grounded in the tax policy principle will help ensure Australia’s competiveness and improve the efficiency of that tax system. The bill before the committee will ensure the continuation of the link between FTCs and movements in excise rates based on sound tax principles.

The minerals industry recommends to the committee that the bill be passed. This would ensure that:

1. The current link between FTCs rates and excise rates is not broken;
2. The sound tax policy principle that business inputs should not be taxed will be adhered to; and
3. A new tax on regional communities and exports is avoided.

The bill should be passed in the current Spring sittings to allow increased FTC claims to be made in claimants’ November Business Activity Statements (BAS) due to be lodged on 21 December 2014.

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