Geothermal energy exploration expenditure

The government announced it will amend the tax law to extend the definition of exploration to include geothermal exploration.

The existing income tax law provides an immediate tax deduction for expenses incurred when exploring or prospecting for minerals, petroleum or quarry minerals. The amendment will ensure that exploration for geothermal energy receives the same treatment as traditional hydrocarbon energy, as an incentive for companies to invest in geothermal energy exploration.

The measure will take effect from 1 July 2012.

Media release

Refer to Tax Deduction a Major Boost for Geothermal Energy in Australia issued on 24 March 2011 by the Minister for Resources and Energy and Minister for Tourism.

Legislation and supporting material

Exposure Draft and Explanatory Memorandum were released by the Treasury on 28 May 2012. Submissions closed on 22 June 2012.

More information For more information refer to Budget measures 2011-12.