MINERALS RESOURCE RENT TAX ACT 2012 [ REPEALED]
* 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 . 80-35(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.
For when a miner holds a starting base asset that is mine development expenditure, see subsection 250-10(2) .80-35(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.
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.
In working out its decline in value under Division 90 , the expenditure is added to the base value of the " asset " as interim expenditure.