Minister for Resources and Northern Australia Matt Canavan said the JMEI would provide $100 million over the next four years to allow greenfields exploration programs to distribute their tax losses as a credit to Australian resident shareholders.
"The government recognises the critical role that smaller, or ‘junior', mineral explorers play in maintaining a healthy and vibrant resources sector, and we are committed to supporting this sector," he said.
"Greenfields mineral exploration underpins the Australian resource sector by finding new mineral deposits and ensuring a strong investment pipeline.
"Our government is focused on promoting investment and driving economic activity. Ongoing exploration and the discovery of new mineral resources are essential to the longer-term future of Australia's resources sector. They are also the vital components for the tools of our modern economy - from smartphones to solar panels."
The JMEI replaces the former Exploration Development Incentive, which did not have a high take-up rate.
Minister for Finance Mathias Cormann said the scheme was about backing juniors to make the next large-scale discovery, something Australia had lacked in the past two decades.
He said this new incentive entitled Australian resident investors in small minerals exploration companies to a refundable tax offset (or where the investor is a corporate tax entity, additional franking credits) if the company in which they have invested issued them an exploration credit.
"The ability of an exploration company to give up their tax losses to distribute credits to investors as a tax offset will make investing in a junior explorer much more attractive," Cormann said.
The Association of Mining and Exploration Companies welcomed the new legislation.
"The decline in greenfields exploration over the last decade is a significant concern, and one that threatens to undermine the future growth of the mining industry in Australia," AMEC CEO Warren Pearce said.
"The JMEI is desperately needed to support Australian mineral exploration."
"AMEC has fought long and hard for the realisation of this legislation. We are extremely pleased to see that both the major parties recognise the need for this legislation and support the passage of the Bill."
