Published on 29 Jul 2010 • Australia |
MRRT calculation (by project) | |
Revenue (the value of the commodity, determined at its first saleable form) less all costs to that point (ie; operating expenses, including 100% writeoff for new capital investment) less MRRT capital allowance (long term government bond rate + 7%) = MRRT project profit or loss | + - - = |
+/- losses transferred from other projects MRRT extraction allowance (25% of MRRT profits) = MRRT net profit | = MRRT profit - Tax @ 30% |
MRRT liability = 30% of MRRT net profit | |
less state royalty and uplifted royalty offset | = net MRRT |