Newly released Exploration Development Incentive discussion paper provides boost for junior miners

The Federal Government has this month released the discussion paper Exploration Development Incentive: Policy Design (Discussion Paper) for consultation, which aims to provide incentives for investment in junior mineral exploration companies by implementing a system of passing the benefit of tax losses through to shareholders.

The exploration development incentive (Incentive), planned to apply from 1 July 2014, would allow junior mineral exploration companies to relinquish exploration tax losses by distributing a refundable tax offset, an 'Exploration Credit', to its members. The Discussion Paper seeks feedback on possible design and implementation arrangements of the Incentive, with submissions due 4 April 2014.