Australia Parliament debates junior exploration tax incentive

JOHANNESBURG (miningweekly.com) – The legislative debate in the federal Parliament to implement the Junior Minerals Exploration Tax Incentive (JMEI) is to resume on Tuesday evening, potentially bringing the incentive one step closer to implementation.

Association of Mining and Exploration Companies (AMEC) CEO Warren Pearce said that the Amendment Bill would implement the Prime Minister’s commitment that A$100-million of direct tax offsets would become available over four years.

It would allow mineral exploration companies (with no mining income) to renounce and pass future tax deductions to their Australian resident investors.

“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. They need to be replenished by successful new discoveries as soon as possible.

“Mineral exploration is a long-term, high-risk activity, which needs to attract equity capital in a globally competitive market place. The JMEI will significantly assist in raising that capital,” Pearce said in a media release.

AMEC has been advocating for a scheme by which junior companies undertaking greenfield mineral exploration activity in Australia could pass those losses back to their investors.

Pearce added that, by supporting this Bill, the Turnbull government, the National Party, and the Australian Labor Party were showing their support for the mining and mineral exploration industry.

“As there is bi-partisan support we anticipate that the Amendment Bill will pass through the House of Representatives and the Senate very quickly.”