The EDI gives shareholders in small exploration companies, with no taxable income, credits for greenfields mineral exploration. Shareholders can then claim accumulated tax offsets when lodging their next returns.
For the 2015 financial year 84 companies claimed a total expenditure of $A70 million on greenfields exploration. That will allow them to issue $21 million in credits to shareholders, 85% of the possible annual allocation.
“It is encouraging to see the industry utilise this initiative to explore for new discoveries that can further Australia’s economic and jobs growth,” Assistant Treasurer Kelly O’Dwyer said.
Association of Mining and Exploration Companies CEO Simon Bennison predicted that thousands of shareholders would benefit from the scheme.
“The subsequent social and economic benefits for the nation will be immense,” he said.
“AMEC has been working closely with the Australian Tax Office and the Department of Industry and Science in order to review the operation of the EDI, and looks forward to some of the initial administrative issues being remedied during a broader review.”
Costing $100 million, the department of resources will make a further $35 million available to companies for the 2016 financial year, with another $40 million for 2017.
