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  • Junior Minerals Exploration Incentive

    The Junior Minerals Exploration Incentive (JMEI) encourages investment in small minerals exploration companies that carry out greenfields mineral exploration in Australia.

    The JMEI will enable eligible exploration companies to generate tax credits by choosing to give up a portion of their losses from greenfields mineral exploration expenditure.

    These tax credits can then be distributed to investors who purchase newly issued shares in that eligible entity during a certain period.

    Australian resident shareholders who are issued an exploration credit will be entitled to a refundable tax offset or, if the shareholder is a corporate tax entity, additional franking credits.

    The exploration company’s carry forward losses will be reduced proportionately to reflect the amount of exploration credits issued to its shareholders.

    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 serve 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 over a four year period as follows:

    • $15 million in the 2017-18 income year
    • $25 million in the 2018-19 income year
    • $30 million in the 2019-20 income year
    • $35 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.

    An approved regulationExternal Link added $5 million in unused exploration credits from the 2017-18 income year to the exploration credits available for the 2020-21 income year.

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    Last modified: 26 Mar 2018QC 54868