Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013 (88 of 2013)

Schedule 7   Miscellaneous amendments

Part 1   Resource rent taxation

Minerals Resource Rent Tax Act 2012

25   Subsection 90-65(5)

Repeal the subsection (including the note), substitute:

(5) However, if one or more of the following applies:

(a) there have been reductions to a *starting base loss relating to the *starting base asset, for that *MRRT year or an earlier MRRT year, under subsection 80-40(3) or (4);

(b) there have been reductions to a starting base loss relating to the asset, for that MRRT year or an earlier MRRT year, under paragraph 115-15(2)(b);

(c) there has been no starting base loss for that MRRT year, or no starting base loss for an earlier MRRT year, for the mining project interest to which the asset relates, because of paragraph 115-15(2)(a), 130-15(a) or (b) or 200-5(b) or (c);

the amount included in the miner's *mining revenue under subsection (4) is reduced by the following:

Excess amount x (Sum of reductions / Total decline)

where:

excess amount is the amount of the excess mentioned in subsection (4).

sum of reductions is the sum of:

(a) any reductions to a *starting base loss relating to the *starting base asset, for that *MRRT year or an earlier MRRT year, under subsection 80-40(3) or (4); and

(b) any reductions to a starting base loss relating to the asset, for that MRRT year or an earlier MRRT year, under paragraph 115-15(2)(b); and

(c) any starting base losses, for that MRRT year or an earlier MRRT year, that paragraph 115-15(2)(a), 130-15(a) or (b) or 200-5(b) extinguished, or paragraph 200-5(c) prevented from arising, to the extent that they related (or would have related) to the asset.

total decline is the sum of the declines in value of the asset that have happened during that *MRRT year or any earlier MRRT year.

Note 1: Reductions happen under subsection 80-40(3) or (4) if the asset is used, installed for use, or constructed for use:

(a) for a purpose other than carrying on upstream mining operations relating to the mining project interest; or

(b) in connection with excluded expenditure.

Note 2: Starting base losses are reduced under paragraph 115-15(2)(b) if a miner chooses to treat a mining project interest as having combined with another despite non-compliance with section 115-35.

Note 3: Starting base losses are extinguished, or prevented from arising, if:

(a) under paragraph 115-15(2)(a), a miner chooses to treat a mining project interest as having combined with another despite non-compliance with section 115-35; or

(b) under paragraph 130-15(a) or (b), the suspension day for the mining project interest happens; or

(c) under paragraph 200-5(b) or (c), a miner chooses to use the simplified MRRT method.