Australia’s largest resource industry stakeholders have joined forces to ecourage the Federal Government to introduce a Flow-Through Shares (FTS) as soon as possible, calling for a scheme that would enable the transfer of deductions of individual exploration companies to individual investors.
In the FTS, according to the joint industry submission, the tax deduction of the exploration expenditure is leveraged in the capital markets in the subject year, attracting external investors rather than being accumulated as tax losses, which will only be realizable when the company earns a taxable income.
Mining industry stakeholders and government departmental representatives have held several discussions and attended meetings to discuss the development of an appropriate FTS model that would meet the Government’s desired outcome.
According to the submission, the imperative for an efficient and effective counter to the market failures disadvantaging junior explorers is compounded by the current circumstances in capital and product markets.
The Submission to the Minister for Resources and Energy on a proposal to introduce Flow Through Shares in Australia was supported supported by:
- Association of Mining and Exploration Companies
- Australasian Institute of Mining and Metallurgy
- Australian Securities Exchange Australian Shareholders Association C
- hamber of Minerals and Energy (WA)
- Minerals Council of Australia
- Queensland Resources Council
- South Australian Chamber of Mines and Energy
Click here to view the full submission.