EDI & JMEI: WHAT’S THE DIFFERENCE?
Like the EDI, the JMEI provides a tax incentive to invest in small exploration companies undertaking greenfields minerals exploration in Australia.
Australian resident investors of these companies receive a tax incentive where the companies choose to give up a portion of their tax losses relating to their exploration expenditure in an income year. Unlike the EDI, under the JMEI: • Eligibility is limited to investors that purchase newly issued shares
• The incentive is allocated between eligible exploration companies on a first come, first served basis until the annual cap is reached
• A cap on the amount of credits allocated to an entity of 5 per cent of the total amount available for each year.
• The scheme applies from 1 July 2017 to 30 June 2021, with total credits limited to $100m