The Chamber of Minerals and Energy of Western Australia (CME) welcomes today’s announcement by the Coalition of its intention to introduce an Exploration Development Incentive should it win the federal election on 7th September.
An Exploration Development Incentive will strengthen the pipeline to ensure future mining activity continues to underpin the growth of the Australian economy, allowing investors to deduct a proportion of mining exploration expenditure against their taxable income.
“CME has been calling for incentives, such as a mining exploration tax credit, to boost the critical minerals exploration sector,” said CME Chief Executive, Reg Howard-Smith.
“We have seen the competitiveness of Australia as an attractive place for exploration expenditure decline with research showing Australia’s share of global exploration has reduced from 21% in 2002 down to only 12% in 2012,” said Mr Howard-Smith.
“Exploration is the lifeblood of future industry. With sensible and encouraging policy initiatives such as the Exploration Development Incentive, there are positive signs for establishing the future pipeline of projects,” said Mr Howard-Smith.
CME will work closely with the next federal government to see such exploration incentive policies put in place for the benefit of the future growth of the resources sector and the Western Australian and Australian economies.
