A new incentive system needed to encourage exploration in NSW

April 23, 2014

There is an increasing need for an incentive system to encourage exploration in NSW, which would support future mining projects and the jobs and investment they create.

The NSW Minerals Council has contributed to a joint industry submission in response to the federal government’s proposed Exploration Development Incentive, calling for a simple system that keeps compliance costs at a minimum for explorers, investors and the Australian Tax Office.

There has been a 46% decline in expenditure on exploration in NSW in the past two years alone, making an incentive scheme to promote investment more important than ever. The high Australian Dollar, high input costs and an increasingly complex web of red and green tape are also weighing down Australia’s minerals exploration effort. The Exploration Development Incentive will encourage investment in junior exploration companies, supporting the future prosperity of our mining sector.

The joint submission states the Australian minerals industry’s full support for the introduction of the Exploration Development Incentive to help overcome the tax asymmetry where junior explorers with no taxable income are not able to access the immediate deduction for exploration. Under the proposed program, a tax credit will be provided to Australian resident shareholders for eligible exploration expenditure that incurs in Australia.

This joint submission by the NSW Minerals Council and the industry’s other representative organisations demonstrates our continued dedication to supporting minerals exploration and its positive long term benefits for jobs and the NSW economy.

You can read the full submission on our publications page.

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