The Mineral Resources Rent Tax (MRRT)

The Mineral Resources Rent Tax (MRRT) to be implemented on 1 July 2012 will apply a starting base value as at 1 May 2010. RHAS can provide robust and accurate valuations of all plant and equipment employed in resource projects as at 1 May 2010 as these will be required to feed into the eventual calculations that will assess the tax payable.  

Valuation Risks

The Australian Tax Office (ATO) is likely to critically examine all valuations that go to reducing the tax payable. RHAS has an unchallenged record of carrying out valuations for tax purposes including tax consolidation, stamp duty and capital gains tax purposes. RHAS is one of only a handful of plant and machinery valuers registered as Tax Agents for this purpose. (Mining companies should ensure that valuations are carried by a registered tax agent or risk the valuation not being accepted.)  RHAS understands the valuation of long life installed assets as well as the valuation of shorter life assets including mobile plant.

Defend the Valuation

The ATO is likely to review all valuations to ensure that they comply with established valuation methods, and that input parameters are transparent and defensible. 

What to Establish NOW

An asset register including all upstream and downstream assets as at 30 April 2010. The closer that such valuations are carried out, the more defensible they will be.  

Valuation Approach

Our in-depth understanding of valuation requirements for all tax purposes including MRRT allows us to adopt appropriate valuation techniques and to provide a valuation report that will meet the ATO’s valuation criteria. In addition to satisfying your compliance requirements, our valuations will be sufficiently robust as to withstand the highest level of scrutiny. Initiating the documentation process now will help ensure the best MRRT strategy.

Contact us

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