MINERALS RESOURCE RENT TAX ACT 2012 [ REPEALED]

CHAPTER 4 - SPECIALIST LIABILITY RULES  

PART 4-5 - ACCOUNTING FOR MRRT  

Division 190 - Substituted accounting periods  

Operative provisions  

SECTION 190-20   THE EFFECT OF TRANSITIONAL ACCOUNTING PERIODS ON THRESHOLD AMOUNTS  

190-20(1)  
For the purpose of working out, in relation to an * MRRT year that is not a 12 month period (a transitional accounting period ), a component used in working out an amount mentioned in the table, the component is adjusted by multiplying it by:


365
Number of days in the transitional accounting period


Threshold amounts
Item Amount See :
1 a miner ' s group mining profit subsection 45-5(1)
2 a miner ' s group MRRT allowances subsection 45-10(1)
3 a miner ' s share of group mining profit subsection 45-10(1)
4 a miner ' s group production of * taxable resources paragraph 175-15(1)(a)
5 an * entity ' s profit section 200-15

Example:

A miner with a mining profit of $ 45 million for a transitional accounting period of 120 days will not have a low profit offset under section 45-5 or 45-10 , because that profit is adjusted by multiplying it by 365/120, making the profit $ 136.88 million.

190-20(2)  
In addition to subsection (1) , the amount of a miner ' s offset under subsection 45-10(1) in relation to a transitional accounting period is:


Unadjusted offset × Number of days in the transitional accounting period
365

where:

unadjusted offset
is what would be the amount of the offset under subsection 45-10(1) if this subsection did not apply.

Example:

A miner has a mining profit of $ 30 million, and MRRT allowances of $ 5 million, for a transitional accounting period of 120 days. The miner has no connected entities, or affiliates, that are miners.

Under subsection (1), the mining profit is adjusted to $ 91.25 million, and the MRRT allowances are adjusted to $ 15.2 million. Under subsection 45-10(1), the amount of the miner ' s offset would be $ 7.97 million(which would exceed the miner ' s MRRT liability of $ 5.63 million, so MRRT would not be payable).

However, under subsection (2) of this section, that amount is multiplied by 120/365, making the offset $ 2.62 million (which would reduce the miner ' s MRRT liability to $ 3.01 million).

190-20(3)  
For the purposes of working out whether a mining project interest is covered by subsection 200-10(3) in relation to a transitional accounting period, the sums of amounts referred to in paragraphs 200-10(3)(a) and (b) are adjusted by multiplying them by:


365
Number of days in the transitional accounting period




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