Opening the door to more mineral discoveries
Junior exploration companies will soon have access to an incentive for capital raising to help them make more mineral discoveries that are crucial to the resources sector and the broader Australian economy.
Minister for Industry Ian Macfarlane and Assistant Treasurer Arthur Sinodinos released a discussion paper on the Exploration Development Incentive which will apply to exploration undertaken from 1 July 2014.
"The future prosperity of the resources sector and the Australian economy is dependent on our ability to make new mineral discoveries, and this scheme will provide an incentive for exploration," Macfarlane said.
"It will provide investors with a refundable tax offset for 'greenfields' mineral exploration costs, which will give a significant boost to Australia's junior explorers in their quest to uncover new mineral resources."
The Australian government is delivering on an election commitment for a scheme that will boost exploration for new mineral deposits.
"The resources sector has long been one of the most important contributors to our economy. But for years under the Rudd/Gillard governments it was burdened with new taxes, extra regulation and constant attacks from Labor which discouraged new investment," Macfarlane continued.
"The Coalition understands that a vibrant resources sector creates jobs and supports local businesses in regional communities across Australia."
Senator Sinodinos added that the government was acting to cut the red and green tape that has been stifling new investment.
"We are determined to get the exploration industry back on its feet and this targeted programme will focus on small exploration companies," Senator Sinodinos said.
"The Exploration Development Incentive is another way the government is working to get the economic fundamentals right and create an environment for investor confidence and growth."
Following the release of the discussion paper today, there will be a period of consultation until 4 April. Peak industry bodies and other interested parties are invited to make submissions.
Submissions should be sent to firstname.lastname@example.org and the discussion paper is available on the Treasury website.
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