MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 2 - GENERAL LIABILITY RULES  

PART 2-4 - LOW PROFIT OFFSETS  

Division 45 - Low profit offsets  

Operative provisions  

SECTION 45-10   LOW PROFIT OFFSET - PROFITS GREATER THAN $ 75 MILLION AND LESS THAN $ 125 MILLION  

45-10(1)    
A miner with a group mining profit greater than $ 75 million and less than $ 125 million for an * MRRT year has an offset for that year if the amount worked out using the following formula is greater than zero:

where:

miner ' s group MRRT allowances
is the sum of the * MRRT allowances for each mining project interest for the year that an * entity mentioned in subsection 45-5(1) has.

miner ' s share of group mining profit
is the sum of the miner ' s * mining profit for each of its mining project interests for the year, divided by the miner ' s group mining profit for the year.

taper amount
is the difference between the miner ' s group mining profit for the year and $ 50 million.

Note 1:

An offset under this section reduces the amount of MRRT that a miner must pay for an MRRT year: see section 10-15 .

Note 2:

If the MRRT year is not a 12-month period, the miner ' s group MRRT allowances and the miner ' s share of group mining profit are affected by section 190-20 (substituted accounting periods).

45-10(2)    
The amount of the miner ' s offset for the * MRRT year is the amount worked out using the formula in subsection (1) , multiplied by the * MRRT rate .

Example:

For the 2013-14 MRRT year, Pinder Mines Ltd has a total mining profit of $ 80 million, a group mining profit of $ 100 million, group MRRT allowances of $ 10 million and a taper amount of $ 50 million ( $ 100 million − $ 50 million). The amount worked out using the formula in subsection (1) is $ 22 million:((( $ 75 million − $ 50 million) × 3/2) − $ 10 million) × 4/5. Multiplying this amount by the MRRT rate gives Pinder Mines Ltd an offset for the year of $ 4.95 million.