MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 3 - MRRT ALLOWANCES  

PART 3-6 - TRANSFERRED PRE-MINING LOSS ALLOWANCES  

Division 95 - Transferred pre-mining loss allowances  

Operative provisions  

SECTION 95-25   CAP ON AVAILABLE PRE-MINING LOSSES  

95-25(1)    
Despite section 95-20 , a * pre-mining loss that could otherwise be applied in working out a * transferred pre-mining loss allowance cannot be applied under that section, to the extent the application of the loss would result in:

(a) pre-mining losses that count towards the loss project interest ' s * pre-mining loss cap exceeding that cap; or

(b) pre-mining losses that count towards the receiving interest ' s pre-mining loss cap exceeding that cap.

95-25(2)    
A * pre-mining loss that has been, or is to be, applied in working out a * transferred pre-mining loss allowance counts towards the * pre-mining loss cap of an interest if:

(a) the interest is the loss project interest or receiving interest for that application of the loss; and

(b) the common ownership test in subsection (3) is not met for that application of the loss; and

(c) the pre-mining loss arose in the * MRRT year in which the interest ' s pre-mining loss cap arose (the cap year ), or an earlier year; and

(d) the transferred pre-mining loss allowance is for the cap year, or a later year.

Common ownership test for transfer of pre-mining losses

95-25(3)    
The common ownership test is met for a * pre-mining loss that is to be applied in working out a * transferred pre-mining loss allowance if the * entity that has the loss project interest is the same as, or * closely associated with, the entity that has the receiving interest, at all times in the period:

(a) starting at the start of the * MRRT year for which the loss arises; and

(b) ending at the end of the MRRT year for which the loss is to be applied.

Note 1:

It is not a requirement that the same entity has an interest at all times in the period mentioned.

Note 2:

Section 115-55 sets out further restrictions on applying pre-mining losses if a mining project interest is a combined interest under Division 115 .