The Exploration Development Incentive, designed to give tax breaks to junior mineral explorers, was legislated in federal Parliament yesterday.
The Government says the new legislation is aimed at, “…fostering the discovery of new resource deposits and will encourage investment in eligible junior exploration companies conducting greenfields mineral exploration.”
“New mineral discoveries underpin the future of the Australian mining industry,” Minister for Industry, Ian Macfarlane said in a statement, “Junior and small miners do most of Australia’s greenfields exploration, but changing global market conditions have created challenges and created barriers to new investment and exploration.”
“This new legislation will enable junior explorers to use their tax losses for the benefit of their Australian shareholders.”
The new legislation will provide a strong tax incentive for shareholders to commit capital to the exploration sector, making investment in these juniors attractive and addressing the lack of start-up capital in a competitive market.
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