Just four days out from the Federal election, and during the first day of the AMEC Convention, the Coalition has announced plans to encourage investment and stimulate growth in the resources and energy sector.
The Hon Ian Mcfarlane has announced that the Coalition will introduce an Exploration Development Incentive that will allow investors to deduct the expense of mining exploration against their taxable income. It would start on 1 July 2014.
Addressing the AMEC Convention in Perth, Senator Chris Back personally announced the plans to the delegation of exploration and mining companies and industry investors.
“This is fantastic news for the mineral exploration and mining industry throughout,” said Simon Bennison, AMEC CEO.
“AMEC has been advocating for a proactive tax reform measure that will allow current eligible losses to be passed back to their Australian share owners in the form of a tax credit through the well known franking system.
“The Coalition has listened to industry and recognised the importance of such a policy and the role this plays in maintaining international competitiveness and investment in the exploration and mining industry.
“It will also increase the rate of discovery and lead to the mines of tomorrow, providing future revenue streams for governments.
“These proposed policy changes will assist in making Australia globally competitive once again and hopefully reduce the amount of capital raised in the exploration sector heading offshore.
“The Coalition’s comprehensive policy that will scrap the Carbon Tax, scrap the mining tax and introduce an Exploration Development Incentive is a much needed change to increase investment in the Australian resources sector” said Mr Bennsion.