60‑20 When a royalty credit arises60‑20 When a royalty credit arises

60‑20 When a royalty credit arises

(1) A liability a miner incurs gives rise to a royalty credit for a mining project interest the miner has to the extent that the liability is to pay, in relation to a *taxable resource extracted under the authority of the *production right to which the interest relates: (a) a *mining royalty; or (b) an amount to another *entity by way of *recoupment of a liability the other entity incurs that, because of a previous application of this section: (i) gives rise at any time to a royalty credit for a mining project interest the other entity has that relates to the production right; or (ii) would give rise to such a royalty credit, if the other entity had a mining project interest in relation to the production right.

Note: Sections 60‑30 and 30‑45 set out consequences for the entity that receives a recoupment of an amount giving rise to a royalty credit.

(2) The *royalty credit arises at the time the miner incurs the liability, and relates to the *MRRT year in which it arises.

Note: If more than one liability satisfying this section is incurred in an MRRT year, more than one royalty credit arises in that year.

(3) The *royalty credit ceases to be a royalty credit if it has been fully applied in working out any of the following: (a) a *royalty allowance for the mining project interest; (b) *transferred royalty allowances for other mining project interests.