MINERALS RESOURCE RENT TAX ACT 2012 [ REPEALED]
The * entity may be liable, under this section, to pay MRRT, for the * MRRT year , in relation to the * pre-mining profit . 140-10(2)
For the purpose only of working out the amount (if any) of that MRRT, the * MRRT law has effect as if:
(a) the * pre-mining project interest were, in the * MRRT year and any earlier MRRT years, a mining project interest that the * entity has; and
(b) the * pre-mining profit were a * mining profit for that mining project interest for the MRRT year; and
(c) subsection 70-20(1) is taken to be satisfied for the purpose of determining whether a * pre-mining loss can be applied in working out a * pre-mining loss allowance for that mining project interest for the MRRT year or any earlier MRRT year; and
(d) no * mining loss or * starting base loss arises, or has arisen for that mining project interest for the MRRT year or any earlier MRRT year; and
(e) that mining project interest were not * integrated with any other mining project interest; and
(f) the * exploration right to which the pre-mining project interest relates were a * production right ; and
(g) in a case where the entity is not a miner - the entity were, in the MRRT year and any earlier MRRT years, a miner.
The following MRRT allowances could be available for the pre-mining project interest:
Paragraph (2)(e) precludes the entity from having any transferred royalty allowances, and also precludes the pre-mining project interest from being treated as combined with any mining project interest.
An entity holds a pre-mining project interest that, in the 2015-16 MRRT year has a pre-mining profit of $ 50 million. It also has a royalty credit for the MRRT year of $ 5 million, based on royalties paid for resources the entity sold. The entity also holds another pre-mining project interest that, in the MRRT year has a pre-mining loss of $ 20 million.
The pre-mining profit is taken to be a mining profit of $ 50 million, but the entity has a royalty allowance of $ 5 million and a transferred pre-mining loss allowance of $ 20 million. Under section 10-5 , the entity ' s MRRT liability is:
22.5 % × ( $ 50 million - $ 25 million) = $ 5.625 million
However, the amount the entity must pay is reduced to zero by the low profit offset under section 45-5 .