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Exploration Development Incentive

The Exploration Development Incentive (EDI) has been replaced with the Junior Minerals Exploration Incentive.

Last updated 27 November 2017

The Exploration Development Incentive (EDI) encourages shareholder investment in small exploration companies undertaking greenfields mineral exploration in Australia. It provides economic incentive to invest in the Australian mining sector. This benefits the Australian economy, enabling the mining sector to make new mineral discoveries.

The EDI enables eligible exploration companies to create exploration credits by giving up a portion of their tax losses from greenfields minerals expenditure, and distributing these exploration credits to equity shareholders.

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

The incentive applies from the 2014-15 income year with exploration credits capped at a total of $100 million for greenfields minerals expenditure incurred over the three-year period:

  • $25 million in 2014–15 (exploration credits to be created and issued in 2015–16)
  • $35 million in 2015–16 (exploration credits to be created and issued in 2016–17)
  • $40 million in 2016–17 (exploration credits to be created and issued in 2017–18).
Information about the EDI for the relevant income tax years

Income year

No. of applications

Total notified exploration expenditure

Modulation factor

Exploration credit cap

Estimated maximum exploration credits issued





$25 million

$21.1 million





$35 million

$13.7 million





$40 million

$13.3 million

Explains the type of exploration companies that are eligible for the Exploration Development Incentive (EDI).

Explains what eligible exploration expenditure is for the purposes of the Exploration Development Incentive (EDI).

How to participate in the JMEI, which replaced the Exploration Development Incentive (EDI).

Work out what to do if you receive a statement from an entity advising that you have received exploration credits.

Questions you may have about the Exploration Development Incentive (EDI) and the eligibility conditions.