- Category: Mining & Exploration
The R&D Tax Incentive
The Research and Development (R&D) Tax Incentive offsets some of the costs of doing eligible R&D activities.
It is open to organisations from any industry in Australia to assist companies doing eligible work to create new or improved products, processes and services by reducing their tax.
SACOME's 2016 Federal Election Priorities and responses
SACOME regularly meets with state and federal Ministers and department executives to discuss challenges within the industry that impact on the ability of companies to explore and discover deposits, and bring them into production in a timely manner.
Ensuring an optimal regulatory and approvals framework is in place together with a positive department culture open to new projects and committed to results, is essential if we are to realise the potential of our resources industry. The resources industry is one of South Australia's key economic industry's and the one with the highest potential for future growth and state contributions. Ensuring our regulatory environment is supportive of project development, approvals times and conditions are reasonable, fees and levies fair and nationally competitive, and that South Australia is viewed as an attractive resource investment jurisdiction, is one of SACOME's key roles.
Exploration Development Incentive
SACOME initiated lobbying for the EDI in 2008. After years of persistence, including gathering support from other bodies & developing the model for Australian use, it was finally approved.
Since 2008, SACOME was in direct consultation with Government to develop a minerals exploration tax credit, otherwise known as a Flow Through Shares scheme. As part of their 2013 Election policy platform, the Liberal Party announced that should they win office, they would introduce an Exploration Development Incentive (EDI) scheme to allow investors to deduct the expense of mining exploration against their taxable income.
Targeted at small exploration companies by limiting eligibility to companies with no taxable income, the scheme applied to investments made from 1 July 2014 and capped at $100 million over forward estimates. That promise was kept and in February 2014, after years of persistent lobbying by SACOME we contributed to a direct stakeholder submission to assist treasury publish its public policy document.
In July 2014, the Federal Government released a paper detailing how the EDI will operate. SACOME continued to consult with the Government and was at the forefront of design on this important initiative, including providing the model which the final result was based on (developed by SACOME Councillor Alice McCleary.)
The initiative has proven successful, with 84 applications received across Australia in the 2014/15 year. South Australian explorer PepinNini Minerals is amongst the successful applicants. SACOME is now lobbying for changes to the incentive to better achieve its outcomes, bringing the incentive inline with our original model.
Drill core library
Through 2012 to 2014 we lobbied the South Australian government for a new drill core library, with the existing main facility at Glenside reaching capacity. The new library was opened early in 2016, and provides a critically important resource for geoscience explorers, with access to South Australia’s wealth of drill cores from past and recent exploration including core extracted over 100 years ago. With most of South Australia’s ore bodies located deep under cover, access to data that could narrow or fine tune the search is important to reduce costs and fast track discoveries of the future.