Tax incentivestill debated
Debate has reignited in Parliament surrounding the implementation of the Junior Minerals Exploration Tax Incentive.
A modified reincarnation of the three-year Exploration Development Incentive was presented to Federal Parliament last week after the original incentive lapsed for the 2016-17 tax year.
Available to only junior exploration companies with no assessable income in a tax year, the Bill will exclude companies which have started resource production and companies connected with an entity which started production.
Association of Mining and Exploration Companies chief executive Warren Pearce said the amended Bill would implement the Federal Government’s commitment that $100 million of direct tax offsets would become available over four years.
“The JMEI is a critical investment in Australia’s future, particularly as recent research in relation to existing mines indicates that there will be significant reductions in production and government revenue streams as these mines reach the end of their current lives,” he said. “Mineral exploration is a long-term, high-risk activity, which needs to attract equity capital ... the JMEI will significantly assist in raising that capital.”
Debate was adjourned in Parliament.
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