What is the JMEI?
The JMEI encourages investment in small minerals exploration companies that carry out greenfields mineral exploration in Australia.
Eligible exploration companies can generate tax credits by choosing to give up a portion of their losses from greenfields mineral exploration expenditure.
These tax credits can then be distributed to investors who purchase newly issued shares in that eligible entity during a certain period.
Australian resident shareholders issued with an exploration credit are entitled to either:
- a refundable tax offset
- additional franking credits if they are a corporate tax entity.
The exploration company’s carry forward losses will be reduced proportionately to reflect the amount of exploration credits issued to its shareholders.
How we allocate exploration credits
The JMEI is voluntary. To participate, companies need to electronically lodge their participation form with us by the due date.
We allocate each eligible entity an exploration credit allocation on a first come, first serve basis until the annual exploration credit cap is exhausted.
If any part of the annual exploration credit cap is unallocated for an income year, that amount is carried over to the following income year. You cannot have an unused allocation of exploration credits from the 2020–21 income year in the 2021–22 income year.
Annual exploration credit caps for 2018 to 2021
The JMEI applied from the 2017–18 income year, with exploration credits capped over a 4-year period as follows:
- $15 million in the 2017–18 income year
- $25 million in the 2018–19 income year
- $30 million in the 2019–20 income year
- $35 million in the 2020–21 income year.
An approved regulation added $5 millionExternal Link in unused exploration credits from the 2017–18 income year to the 2020–21 income year.
Annual exploration credit caps for 2022 to 2025
On 5 May 2021, the Australian Government announced it will invest a further $100 million over 4 years to extend the JMEI to the end of June 2025.
The extension applies from the 2021–22 income year, with exploration credits capped over a further 4-year period as follows:
- $25 million in the 2021–22 income year
- $25 million in the 2022–23 income year
- $27.15 million in the 2023–24 income year
- $29.77 million in the 2024–25 income year.
An approved regulation added $2.15 millionExternal Link in unused exploration credits from the 2021–22 income year to the 2023–24 income year.
An approved regulation added $4.77 millionExternal Link in unused exploration credits from the 2021–22 and 2022-23 income years to the 2024–25 income year.
Contact us
For more information, email us at JMEI@ato.gov.au.