60‑25 Amount of a royalty credit60‑25 Amount of a royalty credit

60‑25 Amount of a royalty credit

(1) To work out the amount of the *royalty credit in the *MRRT year in which the royalty credit arises in relation to a liability of a miner: (a) work out how much of the liability gives rise to a royalty credit under section 60‑20; and (b) divide the result by the *MRRT rate.

Note: Paragraph (b) grosses‑up the royalty payment to an amount that will reduce the ultimate MRRT liability by the amount of the royalty payment.

Note: Example: A miner pays a State royalty of $22.5 million in an MRRT year. The royalty credit in that year is:

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(2) In a later *MRRT year, the amount of the *royalty credit is: Image unavailable in extracted text where:

previous amount of the royalty credit is the amount of the *royalty credit for the preceding *MRRT year.

previous application of the royalty credit is the sum of the amounts of those parts (if any) of the *royalty credit that have been applied in working out, for the preceding *MRRT year, any of the following:

(a) a \*royalty allowance for the mining project interest;
(b) one or more \*transferred royalty allowances for other mining project interests.

uplift factor is:

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Note: Example: A royalty credit of $100 million arises in an MRRT year. $30 million is applied to the royalty allowance in the year the credit arises. In the same year, $30 million is applied to a transferred royalty allowance under Division 65. Assume the long term bond rate for that year is 5.5%. In the next year, the amount of the royalty credit is:($100 million ‑ ($30 million + $30 million)) x (0.055 + 1.07) = $45 million.