MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 3 - MRRT ALLOWANCES  

PART 3-5 - STARTING BASE ALLOWANCES  

Division 90 - Declines in value of starting base assets  

Subdivision 90-C - Base values under the market value approach  

SECTION 90-40   INITIAL BASE VALUE  

90-40(1)    
The base value of the * starting base asset , for the * MRRT year in which the * start time for the asset happens, is:

(a) if at all times between 2 May 2010 and 30 June 2012 the * entity that * held it also had the mining project interest (or held the * pre-mining project interest from which the mining project interest * originated ), and subsection (2) applies to the mining project interest - the sum of:

(i) the * market value of the asset on 1 May 2010; and

(ii) the sum of the amounts of * interim expenditure incurred in relation to the asset (other than amounts of interim expenditure incurred in relation to acquiring or bringing into existence another starting base asset); or

(b) if paragraph (a) does not apply - the sum of the amounts of interim expenditure incurred in relation to the asset.

Note 1:

Division 180 allows a " look-back " approach to valuation to be chosen in some cases.

Note 2:

If the asset is mine development expenditure, its market value on 1 May 2010 will be zero.

Note 3:

Initial base values are separately assessed under Division 155 in Schedule 1 to the Taxation Administration Act 1953 . Those assessed values are used in working out starting base allowances in all assessments of MRRT liabilities: see item 15 of Schedule 4 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012 .

90-40(2)    
This subsection applies to a mining project interest if:

(a) the mining project interest existed (or is a part of a mining project interest that existed) just before 2 May 2010; or

(b) the mining project interest * originates from a * pre-mining project interest that existed, or that is a part of a pre-mining project interest that existed, just before 2 May 2010.

90-40(3)    
In working out the * market value of an asset that is treated as a single * starting base asset because of section 80-30 , disregard any liability of the * entity to pay any * private mining royalty to the extent that:

(a) the royalty relates to * taxable resources extracted from the * project area for the mining project interest, or for a * pre-mining project interest from which the mining project interest * originates ; and

(b) subsection 35-40(3) does not apply to the royalty.

Note:

Subsection 35-40(3) provides that private mining royalties paid under a pre-2 May 2010 arrangement are not covered by the rule that private mining royalties are excluded expenditure.