115‑60 Credit on using varied rate in ce115‑60 Credit on using varied rate in certain cases

115‑60 Credit on using varied rate in certain cases

(1) You are entitled to claim a credit if: (a) you are liable to pay an instalment for an *instalment quarter (the current quarter) in an *MRRT year; and (b) the amount of your instalment for the current quarter is to be worked out using an instalment rate you chose under section 115‑50; and (c) that rate is lower than your *applicable instalment rate for the previous quarter in the same year; and (d) the amount worked out using the method statement is greater than nil.

Method statement

Step 1. Add up the instalments you are liable to pay for the earlier *instalment quarters in the year (even if you have not yet paid all of them).

Step 2. Subtract from the step 1 amount each earlier credit that you have claimed under this section or section 115‑100 in respect of the year.

Step 3. Multiply the total of your *instalment income for those earlier *instalment quarters by your *applicable instalment rate for the current quarter.

Step 4. Subtract the step 3 amount from the step 2 amount.

Step 5. If the result is a positive amount, it is the amount of the credit you can claim.

Note: Example: In the first instalment quarter in an MRRT year, a miner has instalment income of $100m and an applicable instalment rate of 15%, which has been given by the Commissioner.

Note: In the second instalment quarter in the MRRT year, the miner has instalment income of $80m and uses the same rate given by the Commissioner (15%).

Note: In the third instalment quarter in the MRRT year, the miner has instalment income of $70m and chooses an instalment rate of 12%.

Note: The miner uses the method statement to work out a credit as follows:

Note: Step 1: The instalment of $15m for the first instalment quarter ($100m x 15%), plus the instalment of $12m for the second instalment quarter ($80m x 15%) gives a total step 1 amount of $27m.

Note: Step 2: No earlier credits have been claimed, so there is no amount to subtract from the step 1 amount—the step 2 amount is $27m.

Note: Step 3: The total of the instalment income for the earlier quarters is $180m, multiplied by the rate for the current quarter (12%), equals $21.6m.

Note: Step 4: $27m ‑ $21.6m = $5.4m.

Note: Step 5: The miner has a credit of $5.4m.

Note: The miner also has an instalment liability for the current quarter of $8.4m ($70m x 12%).

Note: After applying the $5.4m credit, the miner will be liable to pay an amount of $3m for the quarter.

(2) A claim for a credit must be made in the *approved form on or before the day on which the instalment for the current quarter is due.

Note: How the credit is applied is set out in Division 3 of Part IIB.

(3) The credit entitlement does not affect your liability to pay an instalment.