In the lead up to last weekend’s federal election the Coalition announced, that if elected, it would introduce an Exploration Development Incentive.
The incentive will allow investors to deduct the expense of mining exploration against their taxable income. Under the proposed program, a tax credit will be provided to Australian resident shareholders for eligible ‘green fields’ exploration expenditure incurred in Australia.
Only companies with no taxable income will be eligible for the incentive and the proportion of expenditure that can be claimed as a credit will be determined by the Australian Taxation Office.
The incentive is proposed for investments made from 1 July 2014.
We will keep you informed on any developments relating to the proposed incentive. If you have any questions, please contact Murray Howlett from our Taxation Services Division on (07) 3023 1300.