MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 3 - MRRT ALLOWANCES  

PART 3-3 - PRE-MINING LOSS ALLOWANCES  

Division 70 - Pre-mining loss allowances  

Subdivision 70-C - Pre-mining losses  

SECTION 70-35   MEANING OF PRE-MINING EXPENDITURE ETC.  
Pre-mining expenditure

70-35(1)    
An * entity ' s pre-mining expenditure , for a * pre-mining project interest for an * MRRT year , is the sum of all amounts that, under this Act, are included in the entity ' s pre-mining expenditure for the interest for the year.

Note:

Most of the amounts are covered by this Division. However, the following amounts may also be included in a miner ' s pre-mining expenditure:

(a) amounts arising as a result of adjustments to take account of changes in circumstances (see Division 160 );

(b) amounts arising as a result of changed use of starting base assets (see section 165-55 ).

70-35(2)    
An amount of expenditure is included in an * entity ' s * pre-mining expenditure for a * pre-mining project interest for an * MRRT year to the extent that the entity necessarily incurred the amount in that year in carrying on * pre-mining project operations of the interest.

70-35(3)    
The expenditure may be of either a capital or revenue nature.

Excluded expenditure

70-35(4)    
However, an amount is not included in the * entity ' s * pre-mining expenditure for the * pre-mining project interest for the * MRRT year to the extent that it:

(a) is * excluded expenditure ; or

(b) would be excluded expenditure, if:

(i) the pre-mining project interest were a mining project interest; and

(ii) the * exploration right to which the pre-mining project interest relates were a * production right to which the mining project interest relates; and

(iii) in a case where the entity is not a miner - the entity were a miner.

Note:

For excluded expenditure , see Subdivision 35-B .

Pre-mining project operations

70-35(5)    
Operations or activities are the pre-mining project operations of the * pre-mining project interest to the extent that, if the pre-mining project interest were a mining project interest, the operations or activities would be * upstream mining operations in relation to such a mining project interest.

70-35(6)    
It does not matter where, or when, the operations or activities are carried on.

Expenditure for deferred farm-out arrangement where no interest transferred

70-35(7)    
An amount of expenditure is included in an * entity ' s * pre-mining expenditure for a * pre-mining project interest for an * MRRT year to the extent that:

(a) another entity necessarily incurred the amount in that MRRT year, or an earlier MRRT year, in carrying on * exploration or prospecting for * taxable resources in the * project area for the pre-mining project interest; and

(b) the exploration or prospecting was carried on under an * arrangement with the entity; and

(c) the terms of the arrangement gave the other entity a right, or a contingent right, to acquire from the entity an interest in the * exploration right to which the pre-mining project interest relates; and

(d) in that MRRT year, the other entity stops having the right, without acquiring the interest in the exploration right.

No double counting

70-35(8)    
If 2 or more provisions of this Act include the same amount in an * entity ' s * pre-mining expenditure (whether for the same * MRRT year or a different MRRT year), the amount is included only under the provision that is most appropriate.

70-35(9)    
If:

(a) a provision of this Act includes an amount in an * entity ' s * pre-mining expenditure ; and

(b) the same amount is included, by another provision of this Act, in the entity ' s * mining expenditure (whether for the same * MRRT year or a different MRRT year);

the amount is included only under the provision that is most appropriate.