$100m JMEI boosts exploration
LEGISLATION introducing the four year, $100 million Junior Minerals Exploration Incentive (JMEI) was successfully passed by the Senate in March.
Replacing the former Exploration Development Incentive (EDI), the JMEI meant greenfields exploration programs could distribute their tax losses as a credit to Australian resident shareholders.
WA Finance minister Mathias Cormann said the tax incentive was based on industry feedback and would encourage junior explorers to take risks.
“We want to back these businesses,” Minister Cormann said.
“We are working to get the economic fundamentals right to build a strong prosperous Australia, improve the business climate and unleash our economic potential.”
The ability of an exploration company to give up their tax losses to distribute credits to investors as a tax offset will make investing in a junior explorer much more attractive, Minister Cormann said.
“It aims to improve on the timeliness of the offset and to target new investors that participate in new capital raisings,” he said.
“This will help maximise the incentive for additional investment in minerals exploration.”
Association of Mining and Exploration Companies (AMEC) chief executive Warren Pearce said the passage of the Bill demonstrated clear bipartisan support in Parliament for this legislation.
“AMEC has fought long and hard for the realisation of this legislation,” Mr Pearce said.
“The JMEI is desperately needed to support Australian mineral exploration. The decline in greenfields exploration over the last decade is a significant concern, and one that threatens to undermine the future growth of the mining industry in Australia.
“Greenfields exploration is where Australia will make the next big discovery that will power the Australian economy for years to come.”