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: > Note:  (2) In a later \*MRRT year, the amount of the \*royalty credit is:  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: >  > 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.