Commonwealth Numbered Acts

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