80‑35 Mine development expenditure may b80‑35 Mine development expenditure may be a starting base asset

80‑35 Mine development expenditure may be a starting base asset

(1) *Mine development expenditure is taken to be a starting base asset relating to a mining project interest if it: (a) was incurred during the period between 2 May 2010 and 30 June 2012; and (b) was incurred by a miner: (i) in relation to that mining project interest; or (ii) in relation to a *pre‑mining project interest from which that mining project interest *originated; and (c) is not *interim expenditure relating to property or a right that is a starting base asset because of section 80‑25. (2) While a miner *holds the *starting base asset, it is taken, for the purposes of subsections 80‑40(3) and (4), to be used for the purpose of carrying on *upstream mining operations for the mining project interest.

Note: For when a miner holds a starting base asset that is mine development expenditure, see subsection 250‑10(2).

(3) Mine development expenditure is expenditure that: (a) is incurred in carrying on *upstream mining operations relating to a mining project interest or *pre‑mining project operations relating to a *pre‑mining project interest; and (b) relates to developing the *project area for the interest for the purposes of extracting *taxable resources from the area, including expenditure incurred in: (i) removing overburden from the area or a part of the area; and (ii) excavating a pit in the area; and (iii) sinking a mineshaft in the area.

Note: This section allows mine development expenditure to be taken into account in a miner’s starting base even though it is not related to another starting base asset.

Note: In working out its decline in value under Division 90, the expenditure is added to the base value of the “asset” as interim expenditure.