The Junior Mining Exploration Incentive (JMEI) Bill was introduced into the House of Representatives on 19 October 2017.
The Bill largely continues on from the previous Exploration Development Incentive (EDI) in place from 2014-2017 and will enable eligible mining and exploration companies to generate tax credits by giving up a portion of their unused tax losses. The losses must be from greenfield mineral exploration expenditure, which can then be distributed to company and individual shareholders.
Tax credits can only be generated for new shares issued in that income year.
The incentive is to apply from expenditure incurred from 1 July 2017 until 30 June 2021, with credits over this time limited to $100 million. The ability to generate credits will be available on a first-in, first-served basis until the cap has been reached.
While continuing the incentive is great to seek to attract further investment in junior mining, the take-up of the original EDI was poor given its complexities.
If you would like further information on the JMEI please contact us on 03 5443 0344.