95‑25 Cap on available pre‑mining losses95‑25 Cap on available pre‑mining losses

95‑25 Cap on available pre‑mining losses

(1) Despite section 95‑20, a *pre‑mining loss that could otherwise be applied in working out a *transferred pre‑mining loss allowance cannot be applied under that section, to the extent the application of the loss would result in: (a) pre‑mining losses that count towards the loss project interest’s *pre‑mining loss cap exceeding that cap; or (b) pre‑mining losses that count towards the receiving interest’s pre‑mining loss cap exceeding that cap. (2) A *pre‑mining loss that has been, or is to be, applied in working out a *transferred pre‑mining loss allowance counts towards the *pre‑mining loss cap of an interest if: (a) the interest is the loss project interest or receiving interest for that application of the loss; and (b) the common ownership test in subsection (3) is not met for that application of the loss; and (c) the pre‑mining loss arose in the *MRRT year in which the interest’s pre‑mining loss cap arose (the cap year), or an earlier year; and (d) the transferred pre‑mining loss allowance is for the cap year, or a later year. Common ownership test for transfer of pre‑mining losses (3) The common ownership test is met for a *pre‑mining loss that is to be applied in working out a *transferred pre‑mining loss allowance if the *entity that has the loss project interest is the same as, or *closely associated with, the entity that has the receiving interest, at all times in the period: (a) starting at the start of the *MRRT year for which the loss arises; and (b) ending at the end of the MRRT year for which the loss is to be applied.

Note 1: It is not a requirement that the same entity has an interest at all times in the period mentioned.

Note 2: Section 115‑55 sets out further restrictions on applying pre‑mining losses if a mining project interest is a combined interest under Division 115.