ATO clock is ticking on exploration incentives

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The Australian Tax Office has reminded the exploration sector that it has only 18 more days left to notify intentions of participating in the last year of the Exploration Development Incentive and to lodge the EDI participation form (see ATO website) by September 30.

The final year of the Exploration Development Incentive brings to a close the three-year scheme in which the ATO endeavoured to encourage shareholder investment in small exploration companies undertaking greenfield mineral exploration in Australia.

It has been capped at a total of $100 million over the three year period.

Under the EDI, companies can distribute exploration credits to equity shareholders by converting a portion of their tax losses to create these credits.

The ATO said more than 80 companies participated in the first year of the EDI and more than 50 participated in year two.

The exploration credit will be capped at $40million and will be shared between all eligible participants, the ATO said.

  • For eligibility requirements and more information, visit the ATO’s FAQs and website at ato.gov.au/EDI.
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