Archer Exploration Ltd (ASX:AXE) has been advised by the Australian Taxation Office (ATO) that its application to participate in the Junior Minerals Exploration Incentive (JMEI) scheme for the 2019/20 income year has been accepted.
The JMEI applies to Australian residents who acquire new shares in a greenfields minerals explorer before the end of an income year in which the commissioner has made an exploration credits allocation.
Australian resident shareholders that are issued with exploration credits will generally be entitled to refundable tax offsets (for individual shareholders or superannuation funds) or franking credits (for companies).
The exploration credit that can be issued to an investor is limited to the amount paid by the investor to acquire the new shares multiplied by the corporate tax rate.
Exploration credits must be issued in proportion to each eligible investor's investment so streaming of exploration credits to particular investors is not permitted.
Archer’s participation in the scheme
This is Archer’s third year of participating in the JMEI Scheme, with the ATO confirming that Archer been successful in its application for $300,000 JMEI credits for the 2019/20 year.
Only those shareholders who acquire new Archer shares between July 1 2019 and June 30 2020 are entitled to receive the JMEI credits.
Eligible shareholders will be notified by Archer of their JMEI credit entitlement once the company has lodged its 2019/20 tax return, and these JMEI credits will apply to income tax assessed for the year ended June 30 2020.