35‑45 Meanings of mining royalty and pri35‑45 Meanings of mining royalty and private mining royalty

35‑45 Meanings of mining royalty and private mining royalty

(1) An amount of expenditure is a mining royalty to the extent the expenditure: (a) is made in relation to a *taxable resource extracted under authority of a *production right; and (b) is made under a *Commonwealth law, a *State law or a *Territory law; and (c) either: (i) is a *royalty; or (ii) would be a royalty, if the taxable resource were owned by the Commonwealth, State or Territory (as the case requires) just before the recovery of the resource.

Note: Subparagraph (1)(c)(ii) covers a case where an amount is payable under an Australian law in relation to minerals owned by private landowners.

(2) An amount of expenditure is a private mining royalty if: (a) it is: (i) a *taxable resource or a quantity of something produced using a taxable resource; or (ii) calculated by reference to a taxable resource or a quantity of something produced using a taxable resource; or (iii) calculated by reference to the gross or net value of a taxable resource or something produced using a taxable resource; or (iv) calculated by reference to the revenue, expenditure or profits made or incurred by an *entity in relation to a taxable resource or a quantity of something produced using a taxable resource; and (b) it is not a *mining royalty.