• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 7/31/2013

Australia - Proposal for mineral exploration tax credit 

July 31:  The minerals exploration industry in Australia is currently seeking endorsement of 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 proposed METC include:

  • Companies would forgo a deduction for an 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 would be at the company tax rate of 30%.
  • Only exploration and mining companies that do not earn taxable income would be eligible for the METC.
  • An expenditure on administration expenses and feasibility studies would not qualify for the METC.

Currently, it is proposed that the credit would be effective beginning 1 January 2015.

Read a July 2013 report prepared by the KPMG member firm in Australia: Mineral Exploration Tax Credit

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