125‑10 Effect of mining project split125‑10 Effect of mining project split

125‑10 Effect of mining project split

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 split happens (the pre‑split part year) is payable instead, in accordance with this Division: (a) by each miner that has the mining project interest after the split; and (b) in the MRRT year for each such miner in which the split happens.

Note 1: The MRRT liability for each split interest is worked out in accordance with this Division. The sum total of those liabilities may be more, or less, than the liability the original miner would have had, depending on circumstances such as choices, offsets and available allowances.

Note 2: For any period after the split 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 split may have an additional amount of instalment income in the instalment quarter in which the split happens: see section 115‑95 in Schedule 1 to the Taxation Administration Act 1953.

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

Note: This means, for example, that:

(a) each split interest retains the history of when the mining project interest started, and of the entities who have held 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 split (3) A mining project split happens if: (a) an *arrangement comes into force that has the effect of transferring, from one miner to 2 or more other *entities, the whole of the entitlement comprising a mining project interest; or (b) an arrangement comes into force that has the effect of transferring, from one miner to one or more other entities, a part of the entitlement comprising a mining project interest; or (c) under an *Australian law, the *production right to which a mining project interest relates is split into 2 or more production rights; or (d) 2 or more constituent interests that are taken to be the same mining project interest because of Division 115 stop being *integrated.