Zed Seselja (ACT, Liberal Party, Assistant Minister for Science, Jobs and Innovation) Share this | Hansard source

I'd like to thank those senators who have contributed to this important debate. This bill provides a tax incentive for small minerals exploration companies to encourage investment and risk-taking, which are needed to help underpin the future strength of our resources sector and the Australian economy.

Australian resident investors in small minerals exploration companies will receive a refundable tax offset where the exploration company chooses to give up a portion of their losses relating to their greenfields minerals expenditure in an income year. To encourage investment, only newly issued shares relating to capital raising for investment in new greenfields exploration activity will be eligible for these credits. Credits of up to $100 million over four years will be made available on a first-in, first-served basis. This improves on the previous program assisting junior explorers, creating a more stable platform for investor confidence to help these explorers raise the capital they need to get on with the job of finding tomorrow's mines.

As part of the incentive, amendments to the excess exploration credit tax aim to deter an exploration company from distributing more exploration credits than they are entitled to. The government will move amendments to the bill to clarify the operation of the scheme. These amendments adjust the period for junior explorers to apply for an allocation, exploration of credits, in the first year of the incentive. The amendments also clarify when a junior explorer has an unused allocation of credits. The government will agree to amendments moved by the Labor Party to provide extra certainty that the incentive operates as intended in encouraging greenfields minerals exploration. I commend this bill to the Senate.

Question agreed to.

Bill read a second time.