Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)Chapter 2 Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Treasury Laws Amendment (Junior Minerals Exploration Incentive) Bill 2017
2.1 This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
2.2 This Bill amends the ITAA 1997 to establish the JMEI. The JMEI entitles Australian resident investors in small minerals exploration companies to a refundable tax offset or additional franking credits where the company in which they have invested issues them an exploration credit.
2.3 Companies may issue exploration credits to their new shareholders up to a capped amount. The amount is determined based on the capital contributed by the shareholder, the exploration or prospecting expenditure and tax loss of the company for the previous income year, and the company's exploration credit allocation for the year in which the shares are issued.
Human rights implications
2.4 This Bill does not engage any of the applicable rights or freedoms.
Conclusion
2.5 This Bill is compatible with human rights as it does not raise any human rights issues.
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