90‑5 How to work out the decline in valu90‑5 How to work out the decline in value of a starting base asset

90‑5 How to work out the decline in value of a starting base asset

(1) The decline in value of a *starting base asset, relating to a mining project interest, during an *MRRT year is as follows: Image unavailable in extracted text where:

base value is the base value of the asset for that year worked out under whichever of the following is applicable:

(a) Subdivision 90‑B (book value approach);
(b) Subdivision 90‑C (market value approach);
(c) section 165‑60 (use etc. of starting base assets after starting base adjustment events).

However, the base value may be reduced under section 90‑60 (partial disposal) or section 90‑65 (recoupment).

number of starting base days is the number of *starting base days, in relation to the *starting base asset, during the *MRRT year.

write off rate is the write off rate under section 90‑10 or 90‑15 (whichever is applicable) for the asset for the year.

(2) The decline in value during an *MRRT year cannot be more than the asset’s *base value for that year.