95‑30 The pre‑mining loss cap95‑30 The pre‑mining loss cap

95‑30 The pre‑mining loss cap

(1) A pre‑mining loss cap arises for a mining project interest or a *pre‑mining project interest if: (a) an *entity starts to have the interest, other than: (i) because the interest came into existence; or (ii) because of the operation of section 215‑20, 215‑25 or 215‑30 (interests joining or leaving a consolidated group); or (b) the entity that has the interest: (i) joins or leaves a *consolidatable group; or (ii) would join or leave a consolidatable group if the requirements in column 3 of the table in subsection 703‑15(2) of the Income Tax Assessment Act 1997 (Australian residence requirements) for an entity to be a *head company or *subsidiary member of a consolidatable group were disregarded. (2) The amount of the *pre‑mining loss cap for a mining project interest or *pre‑mining project interest is worked out by dividing by the *MRRT rate: (a) if paragraph (1)(a) applies—the amount paid or payable by the *entity for starting to have the interest; or (b) if paragraph (1)(b) applies—so much of the amount paid or payable for the joining or leaving as is reasonably attributable to the interest. (3) However, if a mining project interest or *pre‑mining project interest would, apart from this subsection, have more than one *pre‑mining loss cap, the pre‑mining loss cap for the interest is the one that arises last.