The Department of Industry, Science, Energy and Resources (DISER) is reviewing the Junior Minerals Exploration Incentive (JMEI) to understand its impact and operations, in line with legislative requirements.
The JMEI scheme, which commenced in 2018, encourages investment in small minerals exploration companies that conduct greenfields mineral exploration in Australia.
The scheme allows junior minerals exploration companies to generate tax credits. Companies can choose to give up a portion of their income tax losses from greenfields exploration expenditure in an income year. This acts as an incentive to attract new investment. The scheme provided $100 million over four years from 2017-18.
In May 2021, the Federal Government committed another $100 million to extend the JMEI program for four more years, to end in June 2025.
Annual Impact Assessment
Subdivision 418-190 of the Income Tax Assessment Act 1997 (ITAA 1997) requires that an Annual Impact Assessment be conducted on the operation of the scheme.
This includes measuring how much additional exploration or prospecting is attributable to the scheme each year of its operation.
A consultation process opened on 14 September 2021, providing the opportunity for industry and the broader community to provide information on the impact of the 2018-19 round of the JMEI. Consultation closes on 14 October 2021.
Read the consultation paper and make a written submission on DISER’s Consultation hub.