2‑1 What this Act is about2‑1 What this Act is about

#### 2‑1 What this Act is about This Act works out a miner’s MRRT liability on mining profits made from extracting taxable resources (mainly coal and iron ore) for a mining project interest for a year. A mining project interest is principally a share of the output of an undertaking to extract taxable resources. Mining profit consists of mining revenue less mining expenditure. The sum of the miner’s mining profits for its interests are taxed at the MRRT rate. Mining revenue is mainly that part of the revenue the miner makes from supplying, exporting or using extracted taxable resources (or things produced from them) that reasonably relates to the form and place the resources were in at their valuation point (usually when leaving the run‑of‑mine stockpile). Mining expenditure is mainly the costs of finding and extracting the taxable resources and getting them to their valuation point. Mining profit may be reduced by allowances for past losses, for the miner’s existing investments at 2 May 2010 (called a starting base allowance), and for the miner’s Commonwealth, State and Territory mining royalty amounts. Some allowances can be transferred to other mining project interests to reduce their mining profits. If the total mining profits of the miner and certain connected entities is $75 million or less, a low‑profit offset will ensure that the miner has no liability for MRRT. The offset is phased‑out for profits between $75 million and $125 million.