MRRT second exposure draft released on 18 September 2011

On 18 September 2011 the Federal Government released the second exposure draft legislation for the proposed Minerals Resource Rent Tax (MRRT). The MRRT will commence on 1 July 2012 and apply to profits from iron ore and coal projects in Australia.

While the core policy and framework of the legislation remains the same, the second draft contains new provisions in relation to:

• winding down and ending mining project interests;
• pre-mining project interests, including the transfer, splitting and ending of such interests;
• adjustments for change in circumstances;
• starting base adjustments;
• valuation principles, including valuation principles for starting base assets;
• accounting for MRRT, including currency translation and substituted accounting periods;