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.