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  • Junior minerals exploration incentive

    The government introduced in 2018 a Junior Minerals Exploration Incentive (JMEI) to provide a tax incentive for junior exploration companies to encourage investment and risk taking.

    The JMEI will enable eligible companies to create and issue tax credits by giving up a portion of their tax losses from greenfield mineral exploration expenditure, which can then be distributed to eligible shareholders. Tax credits can only be generated for new shares issued in that income year.

    Australian resident shareholders that are issued with a tax credit will be entitled to a refundable tax offset or additional franking credits. The issuing company's carry forward losses will be reduced to reflect the amount of the credits created.

    The JMEI is voluntary and companies seeking to participate will need to electronically lodge their participation form with us by the due date. We will allocate each eligible entity an exploration credit allocation on a first come, first served basis until the annual exploration credit cap for each income year is exhausted.

    The JMEI applies from the 2017-18 income year with exploration credits capped at a total of $100 million over a four year period:

    • $15 million in the 2017-18 income year
    • $25 million in the 2018-19 income year
    • $30 million in the 2019-20 income year
    • $30 million in the 2020-21 income year.

    If any part of the annual exploration credit cap is unallocated for an income year, the amount that is unallocated will be carried over to the following income year.

    JMEI builds upon the Exploration Development Incentive which ceased on 30 June 2017. Further information on the operation of the JMEI and how to apply is available at Junior Minerals Exploration Incentive.

    At the date of publishing, there has been no Government decision on whether the JMEI is to be continued post 30 June 2021.

    Legislation and supporting material

    Treasury Laws Amendment (Junior Minerals Exploration Incentive) Act 2018External Link

    See also:

      Last modified: 22 Dec 2020QC 53323