120‑10 Effect of mining project transfer120‑10 Effect of mining project transfer

120‑10 Effect of mining project transfer

Liability for MRRT moves with interest (1) Any MRRT that would otherwise be payable by a miner in relation to a mining project interest in relation to the part of an *MRRT year before a *mining project transfer happens (the pre‑transfer part year) is payable instead, in accordance with this Division: (a) by the miner that has the mining project interest after the transfer; and (b) in the MRRT year for that miner in which the transfer happens.

Note 1: The MRRT liability for the miner that has the interest after the transfer is worked out in accordance with this Division. It may be more, or less, than the liability the other miner would have had, depending on circumstances such as choices, offsets and available allowances.

Note 2: For any period after the transfer that the new miner has the interest, its liability for MRRT (if any) is worked out under the ordinary rules.

Note 3: The miner that has the interest after the transfer may have an additional amount of instalment income in the instalment quarter in which the transfer happens: see section 115‑95 in Schedule 1 to the Taxation Administration Act 1953.

Continuation of mining project interest (2) The mining project interest (the new interest) that a miner (the new miner) has just after a *mining project transfer is taken to be a continuation of the mining project interest (the original interest) a miner (the original miner) had just before the transfer.

Note: This means, for example, that:

(a) the mining project interest retains the history of when it started, and of the miners who have had the interest at various times; and
(b) a choice made, under Division 85, of the valuation approach for the mining project interest continues to have effect; and
(c) starting base assets that have been used to an extent in relation to the mining project interest before the transfer retain the history of that use.

Meaning of mining project transfer (3) A mining project transfer happens if: (a) an *arrangement that has the effect of transferring the whole of the entitlement comprising a mining project interest from one miner to a single other *entity comes into force; and (b) the mining project interest the other entity starts to have covers the same *project area.

Note: If the arrangement relates to a combined interest (see Division 115) that is integrated because the original miner chose downstream integration:

(a) the interest will not be a combined interest after the transfer unless the new miner has chosen downstream integration; and
(b) under Division 125, there will be a split of the combined interest until the new miner makes such a choice.