AUSTRALIA – The Australian government has announced a new A$100-million (US$80 million) Junior Mineral Exploration Tax Credit to boost investment and mineral discovery. The move was announced by prime minister Malcolm Turnbull at a Liberal Party conference in Perth last weekend.
The tax credit is similar to the incentives afforded to purchasers of flow-through shares in Canada. The Australian version allows junior companies without income to pass future tax deductions and/or losses to resident Australian investors. The new tax credit will replace the former Exploration Development Incentive, starting in the 2018 financial year and continuing over four years.
BHP’s Olympic Dam mine recovers uranium, copper, gold and silver. (Credit: BHP Billiton)
The incentive follows the announcement earlier last week that the Western Australian government will continue funding the state’s A$10-million per year Exploration Incentive Scheme.
“After falling to decade-low levels, exploration expenditure in the state is beginning to show some positive growth and today’s announcement will further boost confidence in the sector,” said Chamber of Minerals and Energy of WA acting deputy CEO Kane Moyle.
Recent numbers from the Australian Bureau of Statistics indicated that exploration expenditures in that country were A$428.5 million in Q2 2017. The most money –A$17.4 million – was spent in Western Australia, a jump of 23.5% over the same quarter a year earlier.