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MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 3 - MRRT ALLOWANCES  

PART 3-5 - STARTING BASE ALLOWANCES  

Division 80 - Starting base allowances  

Guide to Division 80  

SECTION 80-1  

80-1   WHAT THIS DIVISION IS ABOUT  

Starting base allowances enable the following to be taken into account in a miner ' s MRRT liability for a mining project interest for an MRRT year:

  • (a) investments in assets in relation to upstream mining operations before 2 May 2010;
  • (b) certain expenditure on such assets (not including expenditure to acquire rights to resources) made by a miner between 2 May 2010 and 1 July 2012.

    • A starting base allowance consists of a miner ' s available starting base losses. Starting base losses reflect the declines in value of starting base assets.

    Starting base losses that are not applied are increased by one of 2 uplift factors. Which uplift factor to use is governed by whether a book value approach or a market value approach is applied to valuing starting base assets.

    Note 1:

    A starting base allowance can arise in relation to a pre-mining project interest from which a mining project interest originates.

    Note 2:

    Division 85 deals with the valuation approaches. Division 90 deals with declines in value of starting base assets.

    Note 3:

    Division 165 deals with starting base adjustments, which apply if starting base assets cease to be part of a miner ' s starting base. Division 180 allows for valuation of starting base assets using a look-back approach.

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