MINERALS RESOURCE RENT TAX ACT 2012 (NO. 13, 2012)

Table of Provisions

CHAPTER 1--Introduction

PART 1-1--PRELIMINARY

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  

PART 1-2--A GUIDE TO THIS ACT

Division 2--Overview of this Act

• 2.1 What this Act is about  
• 2.5 How this Act is arranged  

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  

Division 4--Status of guides and other non-operative material

• 4.1 Non-operative material  
• 4.5 Guides  
• 4.10 Other material  
 

CHAPTER 2--General liability rules

PART 2-1--CORE RULES

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  

PART 2-2--MINING PROJECT INTERESTS

Division 15--Mining project interests

• 15.1 What this Division is about  
• 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  

Division 20--Taxable resources

• 20.1 What this Division is about  
• 20.5 What are taxable resources  

PART 2-3--MINING PROFITS

Division 25--Mining profits

• 25.1 What this Division is about  
• 25.5 How to work out the mining profit for a mining project interest  

Division 30--Mining revenue

• 30.1 What this Division is about  
Subdivision 30-A--A miner's mining revenue
• 30.5 A miner's mining revenue  
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  
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  
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  

Division 35--Mining expenditure

• 35.1 What this Division is about  
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  
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  

Division 40--Valuation point

• 40.1 What this Division is about  
• 40.5 Meaning of valuation point  

PART 2-4--LOW PROFIT OFFSETS

Division 45--Low profit offsets

• 45.1 What this Division is about  
• 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  

PART 2-5--PAYMENT OF MRRT

Division 50--How to work out when to pay MRRT

• 50.1 What this Division is about  
• 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  
 

CHAPTER 3--MRRT allowances

PART 3-1--ROYALTY ALLOWANCES

Division 60--Royalty allowances

• 60.1 What this Division is about  
• 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  

PART 3-2--TRANSFERRED ROYALTY ALLOWANCES

Division 65--Transferred royalty allowances

• 65.1 What this Division is about  
• 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  

PART 3-3--PRE-MINING LOSS ALLOWANCES

Division 70--Pre-mining loss allowances

• 70.1 What this Division is about  
Subdivision 70-A--Object of this Division
• 70.5 Objects of this Division  
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.  
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  
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  

PART 3-4--MINING LOSS ALLOWANCES

Division 75--Mining loss allowances

• 75.1 What this Division is about  
• 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  

PART 3-5--STARTING BASE ALLOWANCES

Division 80--Starting base allowances

• 80.1 What this Division is about  
Subdivision 80-A--Objects of this Division
• 80.5 Objects of this Division  
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  
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  
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  

Division 85--Valuation approaches

• 85.1 What this Division is about  
• 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  

Division 90--Declines in value of starting base assets

• 90.1 What this Division is about  
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  
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  
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  
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  

PART 3-6--TRANSFERRED PRE-MINING LOSS ALLOWANCES

Division 95--Transferred pre-mining loss allowances

• 95.1 What this Division is about  
• 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  

PART 3-7--TRANSFERRED MINING LOSS ALLOWANCES

Division 100--Transferred mining loss allowances

• 100.1 What this Division is about  
• 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  
 

CHAPTER 4--Specialist liability rules

PART 4-1--MINING PROJECT INTERESTS

Division 115--Combining mining project interests

• 115.1 What this Division is about  
Subdivision 115-A--Object of this Division
• 115.5 Object of this Division  
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  
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  

Division 120--Transferring mining project interests

• 120.1 What this Division is about  
• 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  

Division 125--Splitting mining project interests

• 125.1 What this Division is about  
• 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  

Division 130--Winding down mining project interests

• 130.1 What this Division is about  
• 130.5 Object of this Division  
• 130.10 Suspension days for mining project interests  
• 130.15 Extinguishing allowance components  
• 130.20 Restarting commercial production  

Division 135--Ending mining project interests

• 135.1 What this Division is about  
• 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  

PART 4-2--PRE-MINING PROJECT INTERESTS

Division 140--Pre-mining profits and royalty credits

• 140.1 What this Division is about  
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  
Subdivision 140-B--Pre-mining royalty credits
• 140.25 Pre-mining royalty credits  

Division 145--Transferring pre-mining project interests

• 145.1 What this Division is about  
• 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  

Division 150--Splitting pre-mining project interests

• 150.1 Guide to Division 150  
• 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  

Division 155--Ending pre-mining project interests

• 155.1 What this Division is about  
• 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  

PART 4-3--ADJUSTING MRRT LIABILITIES

Division 160--Adjustments to revenue and expenditure of project interests

• 160.1 What this Division is about  
• 160.5 Object of this Division  
• 160.10 Mining adjustments  
• 160.15 Effect of mining adjustments on mining revenue, mining expenditure etc.  

Division 165--Starting base adjustments

• 165.1 What this Division is about  
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  
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  
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  
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  

PART 4-4--VALUATION

Division 170--Valuation principles

• 170.1 What this Division is about  
• 170.5 Valuations to comply with valuation principles  
• 170.10 The valuation principles  

Division 175--Alternative valuation method

• 175.1 What this Division is about  
Subdivision 175-A--Object of this Division
• 175.5 Object of this Division  
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  
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  

Division 180--Valuation of starting base assets using the look-back approach

• 180.1 What this Division is about  
• 180.5 Choosing to apply the look-back approach  
• 180.10 The effect of the look-back approach on valuation of mining project interests  

PART 4-5--ACCOUNTING FOR MRRT

Division 185--Currency translation

• 185.1 What this Division is about  
• 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  

Division 190--Substituted accounting periods

• 190.1 What this Division is about  
• 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  

Division 195--Non-cash benefits

• 195.1 What this Division is about  
• 195.5 Object of this Division  
• 195.10 Barter transactions  
• 195.15 Gift transactions  

Division 200--Simplified MRRT method

• 200.1 What this Division is about  
• 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  

PART 4-6--INTEGRITY MEASURES

Division 205--Anti-profit shifting

• 205.1 What this Division is about  
• 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  

Division 210--Anti-avoidance

• 210.1 What this Division is about  
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  
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  

PART 4-7--ENTITIES

Division 215--Consolidated groups

• 215.1 What this Division is about  
• 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  

Division 220--Partnerships and unincorporated associations and bodies

• 220.1 What this Division is about  
• 220.5 Partnerships  
• 220.10 Unincorporated associations and bodies  

PART 4-8--MISCELLANEOUS

Division 225--Rehabilitation tax offsets

• 225.1 What this Division is about  
• 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  
 

CHAPTER 5--Miscellaneous

Division 235--Miscellaneous

• 235.1 Regulations  
 

CHAPTER 6--Interpreting this Act

PART 6-1--RULES FOR INTERPRETING THIS ACT

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  

PART 6-2--MEANING OF SOME IMPORTANT CONCEPTS

Division 250--Meaning of hold

• 250.1 What this Division is about  
• 250.5 Meaning of hold  
• 250.10 When certain starting base assets are held  
• 250.15 Things that are jointly held  

Division 255--Integrated mining project interests

• 255.1 What this Division is about  
• 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  

PART 6-3--DICTIONARY

Division 300--Dictionary

• 300.1 Dictionary