MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)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-B - When a miner has a pre-mining loss allowance  

SECTION 70-15   THE AMOUNT OF A PRE-MINING LOSS ALLOWANCE  

70-15(1)    
The amount of the miner ' s * pre-mining loss allowance is so much of the sum of the available pre-mining losses as does not exceed the remaining profit.

Example:

A miner has, for a mining project interest for an MRRT year, a mining profit of $ 400 million, a royalty allowance of $ 200 million and a transferred royalty allowance of $ 100 million. The sum of the available pre-mining losses for the interest for the year is $ 20 million.

Under section 70-10 , the miner has a pre-mining loss allowance for the interest for the year because the mining profit exceeds the sum of the higher ranked allowances ( $ 300 million), giving the miner a remaining profit of $ 100 million.

Under this section, the amount of the pre-mining loss allowance is the sum of the available pre-mining losses ( $ 20 million), because that sum does not exceed the remaining profit.

70-15(2)    
In working out the amount of a * pre-mining loss allowance , * pre-mining losses are applied in the order in which they arise.

Note:

If an available pre-mining loss cannot be wholly applied in an MRRT year, the unapplied amount can be carried forward: see section 70-50 .