MINERALS RESOURCE RENT TAX ACT 2012 [ REPEALED]
To work out the amount of the * royalty credit in the * MRRT year in which the royalty credit arises in relation to a liability of a miner:
(a) work out how much of the liability gives rise to a royalty credit under section 60-20 ; and
(b) divide the result by the * MRRT rate .
Paragraph (b) grosses-up the royalty payment to an amount that will reduce the ultimate MRRT liability by the amount of the royalty payment.
A miner pays a State royalty of $ 22.5 million in an MRRT year. The royalty credit in that year is:
$ 22.5 million
= $ 100 million
In a later * MRRT year , the amount of the * royalty credit is:
previous application of the royalty credit
is the sum of the amounts of those parts (if any) of the * royalty credit that have been applied in working out, for the preceding * MRRT year , any of the following:
(a) a * royalty allowance for the mining project interest;
(b) one or more * transferred royalty allowances for other mining project interests.
* Long term bond rate for the preceding * MRRT year + 1.07
A royalty credit of $ 100 million arises in an MRRT year. $ 30 million is applied to the royalty allowance in the year the credit arises. In the same year, $ 30 million is applied to a transferred royalty allowance under Division 65. Assume the long term bond rate for that year is 5.5 % . In the next year, the amount of the royalty credit is: ( $ 100 million - ( $ 30 million + $ 30 million)) × (0.055 + 1.07) = $ 45 million.