90‑55 Meaning of interim expenditure90‑55 Meaning of interim expenditure

#### 90‑55 Meaning of interim expenditure General interim expenditure (1) An amount that an \*entity incurs in relation to a \*starting base asset that the entity \*holds in relation to a mining project interest (including in relation to acquiring or bringing into existence such an asset) is interim expenditure relating to the asset if: (a) the amount: (i) if the starting base asset is a \*depreciating asset—is included in the cost of the asset under Subdivision 40‑C of the Income Tax Assessment Act 1997; or (ii) if the starting base asset is a \*CGT asset (but not a depreciating asset)—is included in the \*cost base of the asset; and (b) the entity incurs the amount during the period starting on the day provided under subsection (4) or (5) and ending at the end of 30 June 2012. (2) However, if the \*starting base asset is a \*CGT asset (but not a \*depreciating asset), treat the amount of the \*interim expenditure as not including any part of the amount that consists of the third element of the \*cost base under subsection 110‑25(4) of the Income Tax Assessment Act 1997. (3) Subsections (1) and (2) apply to a \*starting base asset that is treated as a single \*starting base asset because of section 80‑30 or subsection 180‑10(3) to the extent that they would apply to the \*constituent assets of the single starting base asset if the constituent assets were starting base assets. Start of the expenditure period (4) If, under Division 85, the book value approach is the valuation approach for the mining project interest, the period starts: (a) if the \*entity \*held the asset at all times from the start of 2 May 2010 until the end of 30 June 2012—on the date of the financial report mentioned in paragraph 90‑25(3)(a) in relation to the accounts in which the value of the asset is recorded; or (b) otherwise—on the first day, before the end of 30 June 2012, from which the entity held the asset at all times until the end of 30 June 2012. > Note: Example: A miner bought an asset on 1 January 2011 and sold it on 1 May 2011. The miner bought the asset again on 1 June 2011 and still held it at the end of 30 June 2012. > Note: The expenditure incurred in buying the asset the first time (on 1 January 2011) is not interim expenditure, because the miner did not hold the asset until the end of 30 June 2012, as required by paragraph (4)(b). > Note: The expenditure incurred in buying the asset the second time (on 1 June 2011) is interim expenditure (if it is covered by paragraph (1)(a)), because the miner held the asset until the end of 30 June 2012. (5) If, under Division 85, the market value approach is the valuation approach for the mining project interest, the period starts: (a) if the \*entity \*held the asset at all times from the start of 2 May 2010 until the end of 30 June 2012—on 2 May 2010; or (b) otherwise—on the first day, before the end of 30 June 2012, from which the entity held the asset at all times until the end of 30 June 2012. (5A) For the purposes of subsections (4) and (5), if: (a) the asset is, or includes, the rights and interests that constitute the mining project interest; and (b) the mining project interest did not exist on 1 May 2010; and (c) the mining project interest \*originates from one or more \*pre‑mining project interests, or one or more parts of pre‑mining project interests, that existed just before 2 May 2010; assume that the mining project interest is a continuation of the pre‑mining project interest. Mine development expenditure as interim expenditure (6) An amount that an \*entity incurs in relation to a mining project interest is interim expenditure if the amount is \*mine development expenditure to which subsection (1) does not apply. (7) To avoid doubt, \*mine development expenditure that is \*interim expenditure cannot also be interim expenditure relating to another amount of mine development expenditure. Excluded expenditure (8) Despite subsections (1) and (6), the amount is not interim expenditure to the extent (if any) that the amount would have been \*excluded expenditure if it had been incurred after 1 July 2012.