12 February 2016
Media Release - #2016009, 2016

In the role of: Minister for Small Business and Assistant Treasurer [21 September 2015 - 18 July 2016]

Strong start for Exploration Development Incentive

Joint media release
with the Hon Josh Frydenberg MP
Minister for Resources, Energy and Northern Australia

The recently released results for the first year of the Government’s $100 million Exploration Development Incentive (EDI) highlight its broad use in new exploration.

The EDI permits small mineral exploration companies with no taxable income to provide exploration credits to their Australian resident shareholders for greenfields mineral exploration.

In the EDI’s first year of operation, 84 applications for credits were made as a result of $70 million of greenfields expenditure. As a result of the EDI, exploration companies will be able to issue more than $21 million in credits to their shareholders. This amounts to nearly 85 per cent of the possible annual allocation.

‘It is encouraging to see the industry utilise this initiative to explore for new discoveries that can further Australia’s economic and jobs growth’, Minister O’Dwyer said.  

‘Throughout this period of lower commodity prices, the Government remains focused on implementing the initiatives and working with industry to ensure Australia’s resources sector remains strong going forward’, Minister Frydenberg said.

In addition to the EDI, the Government is:

  • removing $4.5 billion of red tape from the economy, including $546 million per annum through one-stop shops for environmental approvals to minimise project delays and costs;
  • opening new and expanding existing market opportunities through our free trade agreements with China, Japan and Korea, and the Trans Pacific Partnership; and
  • facilitating investment in essential economic infrastructure through the $5 billion Northern Australia Infrastructure Facility.

Further information on the EDI is available on the Australian Taxation Office website.