80‑25 Meaning of starting base asset80‑25 Meaning of starting base asset

#### 80‑25 Meaning of starting base asset (1) Property, or a legal or equitable right that is not property, is a starting base asset relating to a mining project interest if at the time mentioned in subsection (2), the property or right was: (a) being used; or (b) \*installed ready for use; or (c) being constructed for use; in carrying on \*upstream mining operations relating to the mining project interest. > Note: Division 165 provides for a starting base adjustment if a starting base asset ceases to be used, or installed ready for use, in a project, or construction of the asset stops. (2) The time (start time) is the later of: (a) the start of 1 July 2012; and (b) the start of the day on which production (other than incidental production) of \*taxable resources commences from the \*project area for the mining project interest. (3) However: (a) if, under Division 85, the book value approach is the valuation approach for the mining project interest, the following are not starting base assets: (i) rights and interests constituting the mining project interest; (ii) \*mining, quarrying or prospecting information, or rights to such information; (iii) goodwill; and (b) property, or a legal or equitable right, is not, and is taken never to have been, a starting base asset if: (i) a valid choice has not been made under section 85‑5 specifying the valuation approach for the mining project interest; or (ii) a starting base assessment (within the meaning of subitem 15(3) of Schedule 4 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012) does not cover the property or right; or (iii) immediately before 1 July 2012, the property or right was not \*held by the \*entity that, at that time, had the mining project interest (or held the \*pre‑mining project interest from which the mining project interest \*originated); or (iv) the property or right did not exist before 1 July 2012. (3A) For the purposes of subparagraphs (3)(b)(iii) and (iv), if: (a) the asset is, or includes, the rights and interests that constitute the mining project interest; and (b) the mining project interest did not exist immediately before 1 July 2012; and (c) the mining project interest \*originates from one or more \*pre‑mining project interests, or one or more parts of pre‑mining project interests, that existed immediately before 1 July 2012; assume that the mining project interest is a continuation of the pre‑mining project interest. (4) If, under Division 85, the market value approach is the valuation approach for the mining project interest: (a) treat any \*mining, quarrying or prospecting information, or any rights to such information, as property, or a legal or equitable right, for the purposes of subsection (1); and (b) treat any improvement to land in the \*project area for the mining project interest as satisfying the requirements of that subsection at the time mentioned in subsection (2) if: (i) the improvement was consumed or destroyed in carrying on \*upstream mining operations relating to the mining project interest; and (ii) the consumption or destruction happened after 1 May 2010 but before that time. (5) Subject to section 80‑30, this Part applies to any improvement to, or any fixture on, land as if it were an asset separate from the land, whether the improvement or fixture is removable or not.