The Junior Minerals Exploration Incentive (JMEI) began in 2018. The incentive aims to increase the amount of investment in junior minerals exploration companies to support more greenfields exploration activity.
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 incentive provides $100 million of credits over 4 years.
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.