90‑40 Initial base value90‑40 Initial base value

#### 90‑40 Initial base value (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 \*market value of the asset on 1 May 2010; and (ii) the sum of the 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 amounts of interim expenditure incurred in relation to the asset. > Note 1: Division 180 allows a “look‑back” approach to valuation to be chosen in some cases. > Note 2: If the asset is mine development expenditure, its market value on 1 May 2010 will be zero. > Note 3: 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. (3) In working out the \*market value of an asset that is treated as a single \*starting base asset because of section 80‑30, disregard any liability of the \*entity to pay any \*private mining royalty to the extent that: (a) the royalty relates to \*taxable resources extracted from the \*project area for the mining project interest, or for a \*pre‑mining project interest from which the mining project interest \*originates; and (b) subsection 35‑40(3) does not apply to the royalty. > Note: Subsection 35‑40(3) provides that private mining royalties paid under a pre‑2 May 2010 arrangement are not covered by the rule that private mining royalties are excluded expenditure.