Junior Minerals Exploration Incentive (JMEI): 2018-19 Annual Impact Assessment

Introduction

The Junior Minerals Exploration Incentive (JMEI) aims to increase the amount of investment in junior minerals exploration companies to support more greenfields exploration activity in Australia.

The JMEI allows junior minerals exploration companies to convert a portion of their tax losses into credits. These credits may be passed onto investors of newly issued shares as either a franking credit or refundable tax offset.

The JMEI was initially allocated $100 million, capped over 4 years from 2017–18. The 2021-22 Budget provided an additional $100 million to extend it for a further 4 years until June 2025.  

Section 418-190 of the Income Tax Assessment Act 1997 (ITAA 1997) requires that an impact assessment be conducted on the operation of the JMEI. This includes measuring the additional exploration or prospecting attributable to that JMEI year.