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  • Section D: Mining profit and allowances

    Attention

    When completing Section D, be aware that:

    • after calculating the entity’s mining profit, the entity can apply available royalty credits or mining or pre-mining losses as an allowance. The allowances (if available) are applied in the order in which they appear on the form
    • no allowance can reduce the mining profit below 0 (zero). If the entity has any unapplied royalty credits or mining or pre-mining losses for this return period, after amounts that can be applied for other mining project interests have been transferred, uplift and insert these amounts into the applicable fields in Section F
    • to uplift an unapplied royalty credit or mining or pre-mining loss, multiply the amount of the credit or loss by the uplift rate applicable to that credit or loss.
    End of attention

    If you use an applicable functional currency (foreign currency), then for:

    • mining profit for each MPI, the exchange rate day is the last day of the MRRT year
    • an applied allowance component, the exchange rate day is the last day of the MRRT year to which the allowance component relates.

    MRRT allowance in an MRRT year is only so much of the allowance component as is necessary to reduce the mining profit to zero. You only translate the required amount of the applied allowance component that can be used to Australian dollars.

    Any unapplied portions of royalty credits, pre-mining losses, mining losses and starting base losses stay in your applicable functional currency and are uplifted in that currency (refer to Section F).

    Question 14 Mining profit or loss

    If the sum of mining revenue (10B) is greater than the sum of mining expenditure (13E), the entity will have a mining profit for the interest for the return period. Insert 10B – 13E at label 14F and leave 14G blank.

    If the sum of mining expenditure (13E) is equal to the sum of mining revenue (10B), insert a 0 (zero) at 14F and 14G. All allowance amounts will be 0 (zero). Insert a 0 (zero) at question 22 and go to Section E.

    If the sum of mining expenditure (13E) is greater than the sum of mining revenue (10B), the entity will have a mining loss for the interest for the return period. Insert 13E – 10B at label 14G and a 0 (zero) at label 14F. If the entity has a mining loss, all allowance amounts will be 0 (zero). Insert a 0 (zero) at question 22 and go to Section E.

    Attention

    If the interest to which this schedule relates is a PMPI and it has a mining loss for the return period, you should not be completing this schedule for that PMPI. You will need to complete a Minerals resource rent tax (MRRT) return pre-mining project interest (PMPI) schedule instead.

    End of attention

    Question 15 Royalty allowance

    Insert at label 15H the royalty allowance (if any) the entity has applied to reduce the mining profit of the MPI or PMPI for this return period. If the amount of the royalty credit for the MPI or PMPI exceeds the mining profit, the entity must only apply so much of the royalty credit as reduces the mining profit to 0 (zero). This amount is the entity’s royalty allowance for the MPI or PMPI for the return period.

    If there is an unapplied royalty credit for an MPI that is transferable to another of the entity’s MPIs, the entity transfers it to such an MPI. If the entity is not able to transfer the royalty credit, include it (with other applicable amounts) at label 26S.

    If the entity's royalty allowance has reduced its mining profit to 0 (zero), go to question 22.

    Find out more

    MRRT allowances

    End of find out more

    Question 16 Transferred royalty allowance

    Insert at label 16I the transferred royalty allowance (if any) the entity has applied to reduce the mining profit of the MPI for this return period. The amount of the transferred royalty allowance cannot exceed the remaining mining profit (after higher ranking allowances have been applied).

    Attention

    A PMPI cannot transfer royalty credits. It also cannot receive a transferred royalty allowance.

    If the interest is an MPI and the entity has made the choice to use the alternative valuation method to value its mining revenue for the MPI at question 30, the MPI cannot transfer royalty credits.

    End of attention

    If you inserted an amount into label 16I, provide the details of the MPI from which the entity transferred the royalty credits. Insert in the fields provided the following details for the MPI from which the entity transferred the royalty credits – the:

    • mine name
    • tenement or lease number
    • state or territory that issued the tenement or lease number.

    If the entity has transferred royalty credits from multiple MPIs, complete Attachment C with details of every MPI from which the entity transferred royalty credits.

    For information on completing Attachment C, see Attachment C: Transferred allowances.

    If the entity’s transferred royalty allowance has reduced its mining profit to 0 (zero), go to question 22.

    Find out more

    MRRT allowances

    End of find out more

    Question 17 Pre-mining loss allowance

    Insert at label 17J the pre-mining loss allowance (if any) the entity has applied to reduce the mining profit of the PMPI for this return period. If the amount of the pre-mining loss for the PMPI exceeds the remaining mining profit (after higher ranking allowances have been applied), the entity must only apply so much of the pre-mining loss as reduces the remaining mining profit to 0 (zero). This amount is the entity’s pre-mining loss allowance for the PMPI for the return period.

    If there is an unapplied pre-mining loss that is transferable to another of the entity’s interests, the entity transfers it to such an interest. If the entity is not able to transfer the pre-mining loss, include it (with other applicable amounts) at label 27T.

    If the entity’s pre-mining loss allowance has reduced its mining profit to 0 (zero), go to question 22.

    Find out more

    MRRT allowances

    End of find out more

    Question 18 Mining loss allowance

    Insert at label 18K the mining loss allowance (if any) the entity has applied to reduce the mining profit of the MPI for this return period. If the amount of the mining loss for the MPI exceeds the remaining mining profit (after higher ranking allowances have been applied), the entity must only apply so much of the mining loss as reduces the remaining mining profit to 0 (zero). This amount is the entity’s mining loss allowance for the MPI for the return period.

    Attention

    Although for MRRT purposes, pre-mining revenue and pre-mining expenditure are treated as mining revenue and mining expenditure respectively, a PMPI cannot have a mining loss that gives rise to a mining loss allowance or transferred mining loss allowance for another MPI or PMPI.

    End of attention

    If there is an unapplied mining loss that is transferable to another of the entity’s interests, the entity transfers it to such an interest. If the entity is not able to transfer the mining loss, include it (with other applicable amounts) at label 28U.

    If the entity’s mining loss allowance has reduced its mining profit to 0 (zero), go to question 22.

    Find out more

    MRRT allowances

    End of find out more

    Question 19 Starting base allowance

    Attention

    If a starting base adjustment event happens for a starting base asset during the return period (such as the sale of the asset), an adjustment may need to be made to the starting base loss of the MPI.

    For more information, refer to MRRT adjustments, concessions and offsets.

    End of attention

    Insert at label 19L the starting base allowance (if any) the entity has applied to reduce the mining profit of the MPI for this return period. If the amount of the starting base loss for the MPI exceeds the remaining mining profit (after higher ranking allowances have been applied), the entity must only apply so much of the starting base loss as reduces the remaining mining profit to 0 (zero). This amount is the entity’s starting base allowance for the MPI for the return period.

    Attention

    A PMPI cannot have a starting base loss that gives rise to a starting base allowance.

    End of attention

    If there is an unapplied starting base loss for the return period, include it (with other applicable amounts) at label 29V.

    If the entity’s starting base allowance has reduced its mining profit to 0 (zero), go to question 22.

    Find out more

    MRRT allowances

    End of find out more

    Question 20 Transferred pre-mining loss allowance

    Insert at label 20M the transferred pre-mining loss allowance (if any) the entity has applied to reduce the mining profit of the MPI or PMPI for this return period. The amount of the transferred pre-mining loss allowance cannot exceed the remaining mining profit (after higher ranking allowances have been applied).

    If you inserted an amount into label 20M, you need to provide the details of the MPI or PMPI from which the entity transferred the pre-mining loss. Insert in the fields provided the following details for the MPI or PMPI from which the entity transferred the pre-mining loss – the:

    • mine or exploration project name
    • tenement or lease number
    • state or territory that issued the tenement or lease number.

    If the entity has transferred pre-mining losses from multiple MPIs or PMPIs, complete Attachment C with details of every MPI or PMPI from which the entity transferred the pre-mining losses.

    For information on completing Attachment C, see Attachment C: Transferred allowances.

    If the entity’s transferred pre-mining loss allowance has reduced its mining profit to 0 (zero), go to question 22.

    Find out more

    MRRT allowances

    End of find out more

    Question 21 Transferred mining loss allowance

    Insert at label 21N the transferred mining loss allowance (if any) the entity has applied to reduce the mining profit of the MPI or PMPI for this return period. The amount of the transferred mining loss allowance cannot exceed the remaining mining profit (after higher ranking allowances have been applied).

    Attention

    If the entity has made the choice to use the alternative valuation method to value its mining revenue for the MPI at question 30, the MPI cannot transfer pre-mining losses.

    End of attention

    If you inserted an amount into label 21N, provide the details of the MPI from which the entity transferred the mining loss. Insert in the fields provided the following details for the MPI from which the entity transferred the mining loss:

    • the mine or exploration project name
    • the tenement or lease number
    • the state or territory that issued the tenement or lease number.

    If the entity has transferred mining losses from multiple MPIs, complete Attachment C with details of every MPI from which the entity transferred the mining losses.

    For information on completing Attachment C, see Attachment C: Transferred allowances.

    Find out more

    MRRT allowances

    End of find out more

    Question 22 Sum of allowances

    Insert at label 22O the sum of the entity’s MRRT allowances for the interest for the return period. This is calculated by adding up the preceding allowances (15H + 16I + 17J + 18K + 19L + 20M + 21N).

    Last modified: 13 Sep 2013QC 26704