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  • Junior Minerals Exploration Incentive

    On 5 May 2021, the Australian Government announced it will invest a further $100 million over four years to extend the Junior Minerals Exploration Incentive (JMEI) to the end of June 2025.

    The JMEI encourages investment in small minerals exploration companies that carry out greenfields mineral exploration in Australia.

    Eligible exploration companies can 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 issued with an exploration credit are 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 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 applied 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.

    The extension of the JMEI applies from the 2021–22 income year, with exploration credits capped over a further four-year period as follows:

    • $25 million in the 2021–22 income year
    • $25 million in the 2022–23 income year
    • $25 million in the 2023–24 income year
    • $25 million in the 2024–25 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. You cannot have an unused allocation of exploration credits from the 2020–21 income year in the 2021–22 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: 13 Jul 2021QC 54868