MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 4 - SPECIALIST LIABILITY RULES  

PART 4-3 - ADJUSTING MRRT LIABILITIES  

Division 160 - Adjustments to revenue and expenditure of project interests  

Operative provisions  

SECTION 160-15   EFFECT OF MINING ADJUSTMENTS ON MINING REVENUE, MINING EXPENDITURE ETC.  

160-15(1)    
The table has effect for the * MRRT year in which the mining adjustment arises:

Effect of mining adjustments
Item	Column 1 If the original amount was an amount included (or not included) in :	Column 2 … and if the circumstance or event was taken into account in working out the original amount, it would :	Column 3 The mining adjustment is included in :
1	* mining revenue for a mining project interest	increase	mining revenue for that interest
2	* mining revenue for a mining project interest	decrease	* mining expenditure for that interest
3	* mining expenditure for a mining project interest	increase	mining expenditure for that interest
4	* mining expenditure for a mining project interest	decrease	* mining revenue for that interest
5	* pre-mining revenue for a * pre-mining project interest	increase	pre-mining revenue for that interest
6	* pre-mining revenue for a * pre-mining project interest	decrease	* pre-mining expenditure for that interest
7	* pre-mining expenditure for a * pre-mining project interest	increase	pre-mining expenditure for that interest
8	* pre-mining expenditure for a * pre-mining project interest	decrease	* pre-mining revenue for that interest

Example 1:

In MRRT year 1, a miner incurs expenditure of $ 100 million on some machinery that the miner expects to use to the extent of 40 % in the upstream mining operations of a mining project interest for each of 5 years, after which the machinery will be sold. On this basis, $ 40 million is included in the miner ' s mining expenditure for the mining project interest for MRRT year 1.

In MRRT year 2, the miner ' s use of the machinery in those operations increases to 50 % , and the miner expects that extent of use to continue for the rest of the 5 years. As a result, the extent to which the expenditure relates to the interest increases to 48 % . Accordingly, a further $ 8 million is included in the miner ' s mining expenditure for the interest for MRRT year 2.

Example 2:

In MRRT year 1, the miner incurs expenditure of $ 100 million on some machinery, which the miner expects to use for 4 years, but does not expect to use to any extent in the upstream mining operations of a mining project interest. Therefore, none of the expenditure is included in the miner ' s mining expenditure for the mining project interest for MRRT year 1.

In MRRT year 3, the miner starts to use the machinery to the extent of 10 % in those operations, and expects that extent of use to continue until the end of 4 years. As a result, an amount of $ 5 million is included in the miner ' s mining expenditure for the mining project interest for MRRT year 3: 10 % × 2/4 × $ 100 million.

160-15(2)    
However, for the purposes of items 5, 6, 7 and 8 of the table, if a mining project interest that * originates from the * pre-mining project interest exists, the mining adjustment is instead included:

(a) in the circumstances specified in item 5 or 8 of the table - in the * mining revenue of the mining project interest; or

(b) in the circumstances specified in item 6 or 7 of the table - in the * mining expenditure of the mining project interest.

160-15(3)    
If this Division has given rise to a mining adjustment in relation to the original amount then, in working out whether a later event or circumstance gives rise to an adjustment under this Division in relation to the original amount, this Division has effect as if:

(a) the adjustment mentioned in column 3 of the table in subsection (1) had not been made; and

(b) the original amount had instead been increased or decreased (as the case requires) as mentioned in column 2 of that table by the amount of the adjustment.

160-15(4)    
If, apart from this subsection, the original amount:

(a) would be included in the * mining revenue or * mining expenditure for a mining project interest, or in the * pre-mining revenue or * pre-mining expenditure for a * pre-mining project interest ; and

(b) under paragraph (3)(b), would be a negative amount;

the original amount is instead taken to be a positive amount included in the mining expenditure or mining revenue of the mining project interest, or in the pre-mining expenditure or pre-mining revenue of the pre-mining project interest, as the case requires.

160-15(5)    
If this Division has given rise to a mining adjustment in relation to an original amount of * mining expenditure to which subsection 30-40(2) applies, that subsection has effect as if:

(a) the adjustment mentioned in column 3 of the table in subsection (1) of this section had not been made; and

(b) the original amount had instead been increased or decreased (as the case requires) as mentioned in column 2 of that table by the amount of the adjustment.

160-15(6)    
If this Division has given rise to a mining adjustment in relation to an original amount of * pre-mining expenditure to which paragraph 70-40(2)(b) applies, and to which subsection 30-40(2) would have applied if the pre-mining expenditure had been mining expenditure for a mining project interest, that paragraph has effect as if:

(a) the adjustment mentioned in column 3 of the table in subsection (1) of this section had not been made; and

(b) the original amount had instead been increased or decreased (as the case requires) as mentioned in column 2 of that table by the amount of the adjustment.