MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 4 - SPECIALIST LIABILITY RULES  

PART 4-4 - VALUATION  

Division 175 - Alternative valuation method  

Subdivision 175-C - Amounts included in mining revenue under the alternative valuation method  

SECTION 175-40   DEPRECIATION OF ASSETS  

175-40(1)    
This section applies to an asset for an * MRRT year if:

(a) the miner * holds the asset; and

(b) the asset was used, * installed ready for use or being constructed for use in carrying on:

(i) * mining operations relating to the mining project interest; or

(ii) operations or activities that would be mining operations relating to the mining project interest but for paragraph 35-20(1)(b); or

(iii) operations of a kind referred to in paragraph 175-10(1)(b);

relating to a * taxable resource covered by the alternative valuation method for the year; and

(c) those operations were carried out between the * valuation point for the resource and the time of the * mining revenue event mentioned in subsection 175-20(2) .

175-40(2)    
The amount by which such an asset has depreciated in value during the * MRRT year is the amount that would be worked out under Division 40 of the Income Tax Assessment Act 1997 , using one of the following methods, if the assumptions in subsection (3) were made:

(a) the * diminishing value method ;

(b) the * prime cost method ;

(c) another method of depreciation in accordance with * accounting principles .

175-40(3)    
The assumptions are:

(a) the asset is a * depreciating asset ; and

(b) the * MRRT year is an * income year ; and

(c) the method mentioned in paragraph (2)(c) is a method that could be chosen for the purposes of subsection 40-65(1) of the Income Tax Assessment Act 1997 ; and

(d) if the miner * held the asset immediately before 1 July 2012 and chooses to use the alternative valuation method for the first MRRT year - the asset ' s * opening adjustable value on that day is its depreciated optimised replacement cost; and

(e) if the miner chooses the * prime cost method for the purposes of subsection (2) - for the purposes of using the prime cost method, the first MRRT year is a change year within the meaning of subsection 40-75(2) of the Income Tax Assessment Act 1997 .

175-40(4)    
A choice by a miner to use a particular method mentioned in subsection (2) applies to the * MRRT year for which the miner first chooses to use the alternative valuation method and to all later MRRT years.

175-40(5)    
For the purpose of applying paragraph (2)(a) or (b):

(a) the miner may make the choices for the purposes of this section; and

(b) the Commissioner may make the decisions for the purposes of this section;

that the miner or Commissioner could have made under Division 40 of the Income Tax Assessment Act 1997 , relating to working out an amount under that Division.

Note:

Division 119 in Schedule 1 to the Taxation Administration Act 1953 is about choices under the MRRT law.

175-40(6)    
The amount under subsection (2) is reduced to the extent (if any) that, during the year, the asset is not used, * installed ready for use or being constructed for use in operations that satisfy paragraphs (1)(b) and (c).

175-40(7)    
This section applies to any improvement to, or any fixture on, land as if it were an asset separate from the land, whether the improvement or fixture is removable or not.