Division 90 - Declines in value of starting base assets  

Subdivision 90-C - Base values under the market value approach  


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 .

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.

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.


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.


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.