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Minerals Resource Rent Tax Act 2012
No. 13, 2012
No longer in force
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Administered by
Department of the Treasury
Superseded version
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C2012A00013
29 March 2012
-
30 June 2012
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Table of contents
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Chapter 1—Introduction
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Part 1-1—Preliminary
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Division 1—Preliminary
1-1 Short title
1-5 Commencement
1-10 Object of this Act
1-15 Administration of this Act
1-20 Extension to external Territories
1-25 Extraterritorial application
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Part 1-2—A guide to this Act
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Division 2—Overview of this Act
2-1 What this Act is about
2-5 How this Act is arranged
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Division 3—Defined terms
3-1 When defined terms are identified
3-5 When terms are not identified
3-10 Identifying the defined term in a definition
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Division 4—Status of guides and other non-operative material
4-1 Non-operative material
4-5 Guides
4-10 Other material
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Chapter 2—General liability rules
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Part 2-1—Core rules
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Division 10—Core rules
10-1 A miner’s liability for MRRT
10-5 The MRRT liability for a mining project interest
10-10 MRRT allowances
10-15 The effect of low profits on a miner’s liability for MRRT
10-20 Payment of MRRT
10-25 MRRT years
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Part 2-2—Mining project interests
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Division 15—Mining project interests
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Guide to Division 15
15-1 What this Division is about
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Operative provisions
15-5 When an entity has a mining project interest
15-10 Iron ore mining project interests to be kept separate
15-15 Meaning of production right
15-20 Meaning of project area
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Division 20—Taxable resources
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Guide to Division 20
20-1 What this Division is about
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Operative provisions
20-5 What are taxable resources
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Part 2-3—Mining profits
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Division 25—Mining profits
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Guide to Division 25
25-1 What this Division is about
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Operative provisions
25-5 How to work out the mining profit for a mining project interest
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Division 30—Mining revenue
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Guide to Division 30
30-1 What this Division is about
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Subdivision 30-A—A miner’s mining revenue
30-5 A miner’s mining revenue
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Subdivision 30-B—Revenue from supply, export or use of taxable resources
30-10 When amounts from taxable resources etc. are included in mining revenue
30-15 Meaning of mining revenue event
30-20 Meaning of initial supply
30-25 Working out amounts to be included
30-30 Meaning of arm’s length consideration
30-35 When supplies are made
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Subdivision 30-C—Other revenue
30-40 Recoupment or offsetting of mining expenditure
30-45 Recoupment of payments that give rise to royalty credits
30-50 Compensation for loss of taxable resources
30-55 Amounts that do not relate to a particular mining revenue event
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Subdivision 30-D—Miscellaneous
30-60 No double counting
30-65 Expenditure incurred in causing amounts to be received etc.
30-70 Amounts taken to be received
30-75 GST and increasing adjustments
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Division 35—Mining expenditure
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Guide to Division 35
35-1 What this Division is about
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Subdivision 35-A—A miner’s mining expenditure
35-5 A miner’s mining expenditure
35-10 General expenditure
35-15 Meaning of upstream mining operations
35-20 Meaning of mining operations
35-25 No double counting
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Subdivision 35-B—Excluded expenditure
35-35 Cost of acquiring rights and interests in projects
35-40 Royalties
35-45 Meanings of mining royalty and private mining royalty
35-50 Financing costs
35-55 Hire purchase agreements
35-60 Non-adjacent land and buildings used in administrative or accounting activities
35-65 Hedging or foreign exchange arrangements
35-70 Rehabilitation bond and trust payments
35-75 Payments of income tax or GST
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Division 40—Valuation point
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Guide to Division 40
40-1 What this Division is about
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Operative provisions
40-5 Meaning of valuation point
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Part 2-4—Low profit offsets
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Division 45—Low profit offsets
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Guide to Division 45
45-1 What this Division is about
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Operative provisions
45-5 Low profit offset—profits not greater than $75 million
45-10 Low profit offset—profits greater than $75 million and less than $125 million
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Part 2-5—Payment of MRRT
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Division 50—How to work out when to pay MRRT
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Guide to Division 50
50-1 What this Division is about
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Operative provisions
50-5 When assessed MRRT is payable
50-10 When shortfall interest charge is payable
50-15 General interest charge payable on unpaid assessed MRRT or shortfall interest charge
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Chapter 3—MRRT allowances
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Part 3-1—Royalty allowances
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Division 60—Royalty allowances
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Guide to Division 60
60-1 What this Division is about
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Operative provisions
60-5 Objects of this Division
60-10 When a miner has a royalty allowance
60-15 The amount of a royalty allowance
60-20 When a royalty credit arises
60-25 Amount of a royalty credit
60-30 Royalty credits reduced by recoupments
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Part 3-2—Transferred royalty allowances
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Division 65—Transferred royalty allowances
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Guide to Division 65
65-1 What this Division is about
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Operative provisions
65-5 Object of this Division
65-10 When a miner has a transferred royalty allowance
65-15 The amount of a transferred royalty allowance
65-20 Available royalty credits
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Part 3-3—Pre-mining loss allowances
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Division 70—Pre-mining loss allowances
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Guide to Division 70
70-1 What this Division is about
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Subdivision 70-A—Object of this Division
70-5 Objects of this Division
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Subdivision 70-B—When a miner has a pre-mining loss allowance
70-10 When a miner has a pre-mining loss allowance
70-15 The amount of a pre-mining loss allowance
70-20 Available pre-mining losses for a pre-mining loss allowance
70-25 Meaning of pre-mining project interest etc.
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Subdivision 70-C—Pre-mining losses
70-30 Pre-mining losses
70-35 Meaning of pre-mining expenditure etc.
70-40 Meaning of pre-mining revenue
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Subdivision 70-D—Amounts of pre-mining losses
70-45 Pre-mining losses for the MRRT years in which they arise
70-50 Pre-mining losses for later MRRT years
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Part 3-4—Mining loss allowances
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Division 75—Mining loss allowances
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Guide to Division 75
75-1 What this Division is about
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Operative provisions
75-5 Objects of this Division
75-10 When a miner has a mining loss allowance
75-15 The amount of a mining loss allowance
75-20 Mining losses
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Part 3-5—Starting base allowances
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Division 80—Starting base allowances
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Guide to Division 80
80-1 What this Division is about
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Subdivision 80-A—Objects of this Division
80-5 Objects of this Division
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Subdivision 80-B—When a miner has a starting base allowance
80-10 When a miner has a starting base allowance
80-15 The amount of a starting base allowance
80-20 When a miner has a starting base loss
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Subdivision 80-C—Starting base assets
80-25 Meaning of starting base asset
80-30 Treating starting base assets as a single starting base asset
80-35 Mine development expenditure may be a starting base asset
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Subdivision 80-D—Amounts of starting base losses
80-40 Starting base losses for the MRRT years in which they arise
80-45 Starting base losses for later MRRT years
80-50 Mining project interests originating from pre-mining project interests with different valuation approaches
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Division 85—Valuation approaches
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Guide to Division 85
85-1 What this Division is about
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Operative provisions
85-5 Choosing a valuation approach
85-10 Restriction on specifying the book value approach
85-15 The valuation approach for a mining project interest
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Division 90—Declines in value of starting base assets
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Guide to Division 90
90-1 What this Division is about
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Subdivision 90-A—How to work out the decline in value of a starting base asset
90-5 How to work out the decline in value of a starting base asset
90-10 Write off rates under the book value approach
90-15 Write off rates under the market value approach
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Subdivision 90-B—Base values under the book value approach
90-20 Application of this Subdivision
90-25 Initial base value
90-30 Later base values
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Subdivision 90-C—Base values under the market value approach
90-35 Application of this Subdivision
90-40 Initial base value
90-45 Mining project interest originating from pre-mining project interests etc.
90-50 Later base values
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Subdivision 90-D—Miscellaneous
90-55 Meaning of interim expenditure
90-60 Partial disposal of a starting base asset before the start time
90-65 Recoupment of the value of a starting base asset
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Part 3-6—Transferred pre-mining loss allowances
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Division 95—Transferred pre-mining loss allowances
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Guide to Division 95
95-1 What this Division is about
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Operative provisions
95-5 Object of this Division
95-10 When a miner has a transferred pre-mining loss allowance
95-15 The amount of a transferred pre-mining loss allowance
95-20 Available pre-mining losses for a transferred pre-mining loss allowance
95-25 Cap on available pre-mining losses
95-30 The pre-mining loss cap
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Part 3-7—Transferred mining loss allowances
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Division 100—Transferred mining loss allowances
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Guide to Division 100
100-1 What this Division is about
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Operative provisions
100-5 Object of this Division
100-10 When a miner has a transferred mining loss allowance
100-15 The amount of a transferred mining loss allowance
100-20 Available mining losses
100-25 Common ownership test
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Chapter 4—Specialist liability rules
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Part 4-1—Mining project interests
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Division 115—Combining mining project interests
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Guide to Division 115
115-1 What this Division is about
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Subdivision 115-A—Object of this Division
115-5 Object of this Division
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Subdivision 115-B—When mining project interests are combined
115-10 Mining project interests may be treated as the same mining project interest
115-15 Choosing to override non-compliance
115-20 Transferability of royalty credits
115-25 Transferability of pre-mining losses
115-30 Transferability of mining losses
115-35 Starting base losses and starting base assets
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Subdivision 115-C—The effect of combining mining project interests
115-40 The effect of combining mining project interests
115-45 Allowance components arising in preceding MRRT years
115-50 Different valuation approaches for mining project interests
115-55 Transferred pre-mining loss allowances
115-60 Transferred mining loss allowances
115-65 Choice of the alternative valuation method
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Division 120—Transferring mining project interests
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Guide to Division 120
120-1 What this Division is about
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Operative provisions
120-5 Object of this Division
120-10 Effect of mining project transfer
120-15 Effect of transferred property
120-20 Events happening after mining project transfer
120-25 Start of mining venture taken to be mining project transfer
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Division 125—Splitting mining project interests
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Guide to Division 125
125-1 What this Division is about
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Operative provisions
125-5 Object of this Division
125-10 Effect of mining project split
125-15 Meaning of split percentage
125-20 Effect of transferred property
125-25 Effect of MRRT liability from earlier years on rehabilitation tax offset amounts
125-30 Events happening after mining project split
125-35 Start of mining venture taken to be mining project split
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Division 130—Winding down mining project interests
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Guide to Division 130
130-1 What this Division is about
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Operative provisions
130-5 Object of this Division
130-10 Suspension days for mining project interests
130-15 Extinguishing allowance components
130-20 Restarting commercial production
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Division 135—Ending mining project interests
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Guide to Division 135
135-1 What this Division is about
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Operative provisions
135-5 The termination day for a mining project interest
135-10 The effect of renewing or changing production rights
135-15 The effect of renewing or changing mining ventures
135-20 The effect of mining project transfers and mining project splits
135-25 Continuation of obligations etc. after the termination day
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Part 4-2—Pre-mining project interests
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Division 140—Pre-mining profits and royalty credits
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Guide to Division 140
140-1 What this Division is about
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Subdivision 140-A—Pre-mining profits
140-5 Pre-mining profits
140-10 Treatment of pre-mining profits—general rule
140-15 Effect on allowance components for other mining project interests
140-20 Treatment of pre-mining profits—mining project interest originating from the pre-mining project interest
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Subdivision 140-B—Pre-mining royalty credits
140-25 Pre-mining royalty credits
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Division 145—Transferring pre-mining project interests
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Guide to Division 145
145-1 What this Division is about
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Operative provisions
145-5 Object of this Division
145-10 Continuation of pre-mining project interest
145-15 Effects of pre-mining project transfer
145-20 Effect of transferred property
145-25 Events happening after pre-mining project transfer
145-30 Pre-mining project transfer when mining project interest originates
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Division 150—Splitting pre-mining project interests
150-1 Guide to Division 150
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Operative provisions
150-5 Object of this Division
150-10 Continuation of pre-mining project interest
150-15 Effects of pre-mining project split
150-20 Effect of transferred property
150-25 Effect of MRRT liability from earlier years on rehabilitation tax offset amounts
150-30 Events happening after pre-mining project split
150-35 Pre-mining project split when mining project interest originates
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Division 155—Ending pre-mining project interests
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Guide to Division 155
155-1 What this Division is about
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Operative provisions
155-5 The termination day for a pre-mining project interest
155-10 The effect of renewing or changing exploration rights
155-15 The effect of pre-mining project transfers and pre-mining project splits
155-20 Continuation of obligations etc. after the termination day
155-25 Extinguishing allowance components
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Part 4-3—Adjusting MRRT liabilities
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Division 160—Adjustments to revenue and expenditure of project interests
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Guide to Division 160
160-1 What this Division is about
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Operative provisions
160-5 Object of this Division
160-10 Mining adjustments
160-15 Effect of mining adjustments on mining revenue, mining expenditure etc.
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Division 165—Starting base adjustments
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Guide to Division 165
165-1 What this Division is about
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Subdivision 165-A—Starting base adjustment events and starting base adjustment amounts
165-5 Starting base adjustment events
165-10 Starting base adjustment amounts
165-15 Reductions in declines in value of starting base assets
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Subdivision 165-B—General rules for starting base adjustments
165-20 Starting base adjustments
165-25 The effect of starting base adjustments on starting base losses
165-30 The effect of negative starting base adjustments on mining revenue
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Subdivision 165-C—Partial disposal of starting base assets
165-35 Starting base adjustments for partial disposal of starting base assets
165-40 Declines in value of retained parts of starting base assets
165-45 Reductions in starting base losses
165-50 Base value for the next MRRT year
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Subdivision 165-D—Miscellaneous
165-55 Use etc. of starting base assets for other mining project interests etc.
165-60 Effect on base value of use etc. of starting base assets after starting base adjustment events
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Part 4-4—Valuation
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Division 170—Valuation principles
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Guide to Division 170
170-1 What this Division is about
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Operative provisions
170-5 Valuations to comply with valuation principles
170-10 The valuation principles
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Division 175—Alternative valuation method
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Guide to Division 175
175-1 What this Division is about
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Subdivision 175-A—Object of this Division
175-5 Object of this Division
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Subdivision 175-B—Choosing to use the alternative valuation method
175-10 Choosing to use the alternative valuation method
175-15 Group production of taxable resources
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Subdivision 175-C—Amounts included in mining revenue under the alternative valuation method
175-20 When amounts are included in mining revenue under the alternative valuation method
175-25 How to work out the single amount
175-30 Unadjusted revenue amounts
175-35 Downstream operating costs
175-40 Depreciation of assets
175-45 Return on capital costs
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Division 180—Valuation of starting base assets using the look-back approach
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Guide to Division 180
180-1 What this Division is about
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Operative provisions
180-5 Choosing to apply the look-back approach
180-10 The effect of the look-back approach on valuation of mining project interests
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Part 4-5—Accounting for MRRT
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Division 185—Currency translation
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Guide to Division 185
185-1 What this Division is about
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Operative provisions
185-5 Objects of this Division
185-10 Translation of amounts into Australian currency
185-15 Functional currency rules
185-20 Functional currency rules—Australian permanent establishments
185-25 Special translation rules
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Division 190—Substituted accounting periods
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Guide to Division 190
190-1 What this Division is about
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Operative provisions
190-5 Object of this Division
190-10 Accounting periods recognised for income tax purposes
190-15 Changes in accounting periods
190-20 The effect of transitional accounting periods on threshold amounts
190-25 The effect of transitional accounting periods on uplift factors
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Division 195—Non-cash benefits
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Guide to Division 195
195-1 What this Division is about
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Operative provisions
195-5 Object of this Division
195-10 Barter transactions
195-15 Gift transactions
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Division 200—Simplified MRRT method
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Guide to Division 200
200-1 What this Division is about
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Operative provisions
200-5 Effect of the simplified MRRT method
200-10 Choosing to use the simplified MRRT method
200-15 Working out an entity’s profit for simplified MRRT method purposes
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Part 4-6—Integrity measures
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Division 205—Anti-profit shifting
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Guide to Division 205
205-1 What this Division is about
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Operative provisions
205-5 Object of Division
205-10 Amounts to reflect independent dealings
205-15 Method to be used when determining amounts for the purposes of this Division
205-20 Commissioner may compensate entity or another entity
205-25 Commissioner determinations
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Division 210—Anti-avoidance
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Guide to Division 210
210-1 What this Division is about
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Subdivision 210-A—Application of this Division
210-5 Object of this Division
210-10 When does this Division apply?
210-15 When does an entity get an MRRT benefit from a scheme?
210-20 Matters to be considered in determining purpose
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Subdivision 210-B—Commissioner may negate effects of schemes for MRRT benefits
210-25 Commissioner may negate entity’s MRRT benefits
210-30 Commissioner may compensate entity or another entity
210-35 One determination may cover several MRRT years etc.
210-40 Commissioner must give copy of determination to entity affected
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Part 4-7—Entities
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Division 215—Consolidated groups
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Guide to Division 215
215-1 What this Division is about
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Operative provisions
215-5 Objects of this Division
215-10 Choice to consolidate for MRRT purposes
215-15 Single entity rule
215-20 Project interests transferred to head company etc. on joining
215-25 Project interests transferred to leaving entity on leaving
215-30 Mining project interests etc. split to leaving entity on leaving
215-35 Acquisition of consolidated group by another consolidated group etc.
215-40 Instalment rates for leaving entity or new head company
215-45 Effect of choice to continue group after shelf company becomes new head company
215-50 Effect of change of head company or provisional head company of a MEC group
215-55 Effect of group conversions involving MEC groups
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Division 220—Partnerships and unincorporated associations and bodies
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Guide to Division 220
220-1 What this Division is about
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Operative provisions
220-5 Partnerships
220-10 Unincorporated associations and bodies
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Part 4-8—Miscellaneous
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Division 225—Rehabilitation tax offsets
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Guide to Division 225
225-1 What this Division is about
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Operative provisions
225-5 Object of this Division
225-10 Entitlement to rehabilitation tax offsets
225-15 Rehabilitation tax offset amounts relating to mining project interests
225-20 Rehabilitation tax offset amounts relating to pre-mining project interests
225-25 Application of rehabilitation tax offsets
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Chapter 5—Miscellaneous
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Division 235—Miscellaneous
235-1 Regulations
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Chapter 6—Interpreting this Act
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Part 6-1—Rules for interpreting this Act
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Division 245—Rules for interpreting this Act
245-1 What forms part of this Act
245-5 What does not form part of this Act
245-10 Guides and other non-operative provisions, and their role in interpreting this Act
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Part 6-2—Meaning of some important concepts
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Division 250—Meaning of hold
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Guide to Division 250
250-1 What this Division is about
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Operative provisions
250-5 Meaning of hold
250-10 When certain starting base assets are held
250-15 Things that are jointly held
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Division 255—Integrated mining project interests
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Guide to Division 255
255-1 What this Division is about
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Operative provisions
255-5 Upstream integration of mining project interests
255-10 Downstream integration of mining project interests
255-15 Meaning of downstream mining operations
255-20 Choice to integrate
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Part 6-3—Dictionary
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Division 300—Dictionary
300-1 Dictionary
