MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 4 - SPECIALIST LIABILITY RULES  

PART 4-2 - PRE-MINING PROJECT INTERESTS  

Division 140 - Pre-mining profits and royalty credits  

Subdivision 140-A - Pre-mining profits  

SECTION 140-20  

140-20   TREATMENT OF PRE-MINING PROFITS - MINING PROJECT INTEREST ORIGINATING FROM THE PRE-MINING PROJECT INTEREST  
If the * entity has a mining project interest that * originates , during an * MRRT year , from a * pre-mining project interest for which the entity has a * pre-mining profit for the MRRT year:

(a) the pre-mining profit is included in the entity ' s * mining revenue of the mining project interest for the MRRT year; and

(b) section 140-10 does not apply.

Example:

A miner holds a pre-mining project interest that, in the 2015-16 MRRT year has a pre-mining profit of $ 10 million. During the MRRT year, a mining project interest originates from the pre-mining project interest. The mining revenue and mining expenditure for the mining project interest are $ 60 million and $ 100 million respectively.

Under section 75-20, the miner ' s mining loss for the mining project interest for the MRRT year is:

$ 100 million − ( $ 60 million + $ 10 million) = $ 30 million