90‑25 Initial base value90‑25 Initial base value

#### 90‑25 Initial base value Working out the initial base value of a starting base asset (1) The base value of the \*starting base asset, for the \*MRRT year in which the \*start time for the asset happens, is: (a) if at all times between 2 May 2010 and 30 June 2012 the \*entity that \*held it also had the mining project interest (or held the \*pre‑mining project interest from which the mining project interest \*originated), and subsection (2) applies to the mining project interest—the sum of: (i) the initial book value of the asset under subsection (3) or (4) (whichever is applicable); and (ii) the sum of the valuation amounts under subsection (6) for amounts of \*interim expenditure incurred in relation to the asset (other than amounts of interim expenditure incurred in relation to acquiring or bringing into existence another starting base asset); or (b) if paragraph (a) does not apply—the sum of the valuation amounts under subsection (6) for amounts of interim expenditure in relation to the asset. > Note: Initial base values are separately assessed under Division 155 in Schedule 1 to the Taxation Administration Act 1953. Those assessed values are used in working out starting base allowances in all assessments of MRRT liabilities: see item 15 of Schedule 4 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012. (2) This subsection applies to a mining project interest if: (a) the mining project interest existed (or is a part of a mining project interest that existed) just before 2 May 2010; or (b) the mining project interest \*originates from a \*pre‑mining project interest that existed (or that is a part of a pre‑mining project interest that existed) just before 2 May 2010. Initial book value of a starting base asset (3) If: (a) the value of the asset is recorded in the accounts from which the most recent audited financial report before 2 May 2010 was prepared; and (b) the financial report relates to a financial period that ended in the 18 months preceding that day; the initial book value of the asset is as follows:  where: > accepted value is: (a) the value recorded in those accounts, unless paragraph (b) applies; or (b) if that value is inconsistent with an auditor’s report on the financial report—a value that is consistent with the auditor’s report. > long term bond rate for the initial valuation period is the \*long term bond rate for the initial valuation period under subsection (5). > n is the number of days in the initial valuation period, divided by 365. (4) Despite subsection (3), the initial book value of the asset is zero if the value of the asset is not recorded as mentioned in subsection (3). > Note: If the asset is mine development expenditure, it will not have an initial book value. Initial valuation period for a starting base asset (5) The initial valuation period for the asset is the period: (a) starting: (i) on the date of the most recent audited financial report, prepared before 2 May 2010, from the accounts in which the value of the asset is recorded, unless subparagraph (ii) of this paragraph applies; or (ii) if the value of the asset recorded in those accounts is inconsistent with an auditor’s report on the financial report—on the date of the auditor’s report; and (b) ending at the end of the \*MRRT year in which the \*start time for the asset happens. Valuation amounts for interim expenditure (6) If the \*entity that \*held the asset incurred an amount of \*interim expenditure relating to the asset, the valuation amount for the amount of interim expenditure in relation to the asset is:  where: > long term bond rate for the interim valuation period is the \*long term bond rate for the interim valuation period under subsection (7). > n is the number of days in the interim valuation period, divided by 365. Interim valuation period for interim expenditure (7) The interim valuation period for an amount of \*interim expenditure is the period: (a) starting on the day on which the \*entity incurred the amount; and (b) ending at the end of the \*MRRT year in which the \*start time for the asset happens.