• Minerals resource rent tax (MRRT)

    Danger

    Government's announcement to repeal the minerals resource rent tax law

    The government announced on 24 October 2013 that it will seek to repeal the minerals resource rent tax (MRRT) law with effect from 1 July 2014.

    This may affect how you meet your remaining MRRT obligations, including lodgments.

    We have allowed low-volume non-paying entities until:

    • 1 December 2014 to lodge their 2012–13 MRRT returns and starting base returns
    • the later of 1 December 2014 or the first day of the sixth month after their 2013–14 MRRT year to lodge their 2013–14 MRRT returns.

    For more information, refer to Lodging, reporting and paying for MRRT.

    End of danger

    The minerals resource rent tax (MRRT) is a tax on certain profits generated from the extraction of coal and iron ore. Entities that have an entitlement to, or explore for, coal or iron ore that is extracted in Australia, may be affected by MRRT.

    MRRT applies to the following taxable resources:

    • iron ore
    • coal
    • anything produced by the in situ consumption of coal or iron ore
    • coal seam gas extracted as a necessary incident of coal mining or from a proposed coal mine.

    MRRT applies from 1 July 2012 to all new and existing coal or iron ore mining ventures in Australia.

    MRRT entities

    Broadly, MRRT affects entities that are entitled to a share in an extracted taxable resource from a mining venture or that have an interest in an exploration permit or retention lease.

    Even if an entity is not liable to pay MRRT, it may still have obligations under MRRT, including lodging forms, making choices and keeping records. Registering for MRRT ensures prompt processing of forms and payments (including refunds) and allows us to provide MRRT entities with timely information.

    Register for MRRT

    All entities should consider registering for MRRT.

    Changing ownership or winding down of interests

    Mining project interests (MPIs) and pre-mining project interests (PMPIs) may be transferred or split. MPIs may also be combined for MRRT purposes. Special rules apply towards the end of the life of an MPI and PMPI.

    MRRT liabilities

    Generally, MRRT is a project-based tax which means that an entity calculates its MRRT liability separately for each MPI and PMPI.

    Starting base considerations

    All entities should consider getting a starting base.

    MRRT concepts

    Definitions of key MRRT concepts.

    Background to MRRT

    Following the government's announcement of new taxation arrangements for the resource sector in July 2010, there was extensive consultation with industry and stakeholders. Legislation came into effect on 1 July 2012.

  • Last modified: 19 Mar 2014QC 33604