Income Tax Assessment Act 1997

Div 418 inserted by No 21 of 2015, s 3 and Sch 6 item 2, applicable from the 2017-18 to 2021-25 income years, allowing a distribution in those years. The Exploration Development Incentive (EDI) applied from the 2014-15 to 2016-17 years of income, replaced by the Junior Minerals Exploration Incentive (JMEI), of broadly similar operation, applicable for an initial period from the 2017-18 to 2020-21 years of income, extended for a further 4 years, for the 2021-22 to 2024-25 years of income, by Act No 72 of 2021, Sch 2.

S 418-1 amended by No 72 of 2021, s 3 and Sch 2 items 2 - 5, by substituting paragraph " A greenfields minerals explorer can create exploration credits for an income year. Before creating exploration credits, the explorer must obtain an allocation of exploration credits from the Commissioner for the year. Exploration credits cannot be created for the 2025-26 income year or later income years. " for paragraph " A greenfields minerals explorer can create exploration credits for an income year. Before creating exploration credits, the explorer must obtain an allocation of exploration credits from the Commissioner for the year. " , inserting " generally " in paragraph beginning " The exploration credits created for an income year " , inserting " generally " in paragraph beginning " An exploration credit created by a greenfields minerals explorer " and inserting " generally " in paragraph beginning " There is a cap " , effective 1 July 2021 and applicable in relation to exploration credits allocated, or to be allocated, for the 2021-22 income year or a later income year. For transitional provision, see note under s 418-135 .

S 418-1 substituted by No 15 of 2018, s 3 and Sch 1 item 1, effective 1 April 2018. For application and transitional provisions, see note under Subdiv 418-DA heading. S 418-1 formerly read:

SECTION 418-1 What this Division is about  

Generally speaking, you are entitled to a tax offset for exploration credits issued to you, but exploration credits issued to corporate tax entities instead give rise to franking credits.

For the 2015-16, 2016-17 or 2017-18 income year, a greenfields minerals explorer can create, and then issue, exploration credits for the explorer ' s greenfields minerals expenditure for the previous income year. However, the total amount of exploration credits for an income year is limited to the explorer ' s maximum exploration credit amount.

The explorer is liable to pay excess exploration credit tax if the explorer issues exploration credits in excess of that maximum exploration credit amount.

Note:

Excess exploration credit tax is imposed by the Excess Exploration Credit Tax Act 2015 , and the amount of the tax is set out in that Act.

S 418-1 inserted by No 21 of 2015, s 3 and Sch 6 item 2, applicable in relation to the 2015-16, 2016-17 and 2017-18 income years, but not in relation to any later income years, but not in relation to any later income years. However, see amendments in Act No 72 of 2021 that extend the operation of Div 418 for the 2021-22 to 2024-25 years of income and note under Div 418 heading.