Australia

Details

  • Service: Tax, Corporate Tax, Topics, Tax Reform, Resource Taxation
  • Industry: Energy & Natural Resources, Mining
  • Type: Business and industry issue
  • Date: 30/07/2013

Tax Insights

KPMG's analysis of tax issues and developments.

Craig Yaxley

Craig Yaxley
Partner, Direct Tax

+61 8 9263 7127

cyaxley@kpmg.com.au

Mineral Exploration Tax Credit 

by Craig Yaxley, Corporate Tax

The minerals exploration industry is currently seeking endorsement by both major political parties to introduce a Mineral Exploration Tax Credit (METC) to help stimulate investment in greenfields exploration in Australia.

Key attributes of the METC include:

  • companies will forgo a deduction for eligible greenfields exploration expenditure to allow the tax benefit to be passed through to Australian resident shareholders in the form of a tax credit.
  • the tax credit will be at the company tax rate of 30 percent
  • only exploration and mining companies that do not earn taxable income will be eligible for the METC
  • expenditure on administration expenses and feasibility studies will not qualify
  • it is proposed that the scheme will commence effective from 1 January 2015.

 

 

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