MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 2 - GENERAL LIABILITY RULES  

PART 2-3 - MINING PROFITS  

Division 35 - Mining expenditure  

Subdivision 35-B - Excluded expenditure  

SECTION 35-40   ROYALTIES  

35-40(1)    
An amount of expenditure is excluded expenditure to the extent that it is any of the following:

(a) a * mining royalty ;

(b) a * private mining royalty ;

(c) a payment that gives rise to a * royalty credit under paragraph 60-20(1)(b) (payments by way of recoupment for mining royalties).

35-40(2)    
Despite subsection (1), a * private mining royalty is not excluded expenditure , to the extent that:

(a) it is paid to an * entity as consideration for the entity performing services that form part of * upstream mining operations for a mining project interest; and

(b) it does not represent a share of the profits made from a * mining venture to which a mining project interest relates.

35-40(3)    
Despite subsection (1) , a * private mining royalty is not excluded expenditure to the extent that it is paid to an entity under an agreement entered into with the entity:

(a) before 2 May 2010; and

(b) at a time when the entity is an STB (within the meaning of Division 1AB of Part III of the Income Tax Assessment Act 1936 ) other than an * excluded STB .

35-40(4)    
Despite subsection (1), a * private mining royalty is not excluded expenditure , to the extent that it is by way of consideration for the carrying on of * mining operations in the * project area for a mining project interest, if it is paid:

(a) to a native title holder (within the meaning of the Native Title Act 1993 ) whose approved determination of native title (within the meaning of that Act) relates to the project area for the mining project interest; or

(b) to a registered native title claimant (within the meaning of the Native Title Act 1993 ) whose claimant application (within the meaning of that Act) relates to the project area for the mining project interest; or

(c) to a person who holds a right that:

(i) arises under another * Australian law dealing with the rights of * Aboriginal persons or * Torres Strait Islanders in relation to land or waters; and

(ii) relates to the project area for the mining project interest.

35-40(5)    
To the extent a * private mining royalty is not * excluded expenditure because of subsection (3) or (4) , it is not excluded expenditure under section 35-35 .