95‑20 Available pre‑mining losses for a 95‑20 Available pre‑mining losses for a transferred pre‑mining loss allowance

95‑20 Available pre‑mining losses for a transferred pre‑mining loss allowance

(1) A *pre‑mining loss can be applied in working out a *transferred pre‑mining loss allowance for the mining project interest (the receiving interest) for the year in the circumstances set out in subsection (2) or (3).

Note: Once a pre‑mining loss has been fully applied, it ceases to be a pre‑mining loss (see subsection 70‑30(2)), and therefore cannot be applied in working out a transferred pre‑mining loss allowance.

Pre‑mining project interest in force (2) The *pre‑mining loss can be applied if: (a) the *entity that *holds the *pre‑mining project interest (the loss project interest) to which the pre‑mining loss relates is: (i) the miner; or (ii) another entity that is *closely associated with the miner at the end of the year; and (b) either: (i) both the receiving interest and the loss project interest relate to iron ore; or (ii) both the receiving interest and the loss project interest do not relate to iron ore. Pre‑mining project interest replaced by a different mining project interest (3) The *pre‑mining loss can be applied if: (a) a mining project interest *originates from the *pre‑mining project interest to which the pre‑mining loss relates; and (b) the *entity that has that mining project interest (also the loss project interest) is: (i) the miner; or (ii) another entity that is *closely associated with the miner at the end of the year; and (c) either: (i) both the receiving interest and the loss project interest relate to iron ore; or (ii) both the receiving interest and the loss project interest do not relate to iron ore. Competing applications of a pre‑mining loss (4) Despite subsections (2) and (3), the *pre‑mining loss cannot be applied to the extent that it is applied in working out, for the year: (a) a *pre‑mining loss allowance; or (b) a *transferred pre‑mining loss allowance; for another mining project interest. Meaning of closely associated (5) A miner is closely associated with another *entity at a time if, at that time, they: (a) are both *members of the same *consolidatable group; or (b) would both be members of the same consolidatable group if the otherwise applicable requirements in column 3 of the table in subsection 703‑15(2) of the Income Tax Assessment Act 1997 (Australian residence requirements) were disregarded.

Note: The members of a consolidated group are closely associated, since a consolidatable group continues to exist even after the day on and after which the consolidatable group is taken to be consolidated.