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Newly elected Australian pm Tony Abbott plans to introduce an initiative to encourage mining development and exploration in new areas of the country.
“The future prosperity of the mining sector and the Australian economy is dependent on our ability to make new mineral discoveries,” his Liberal-National Party coalition said.
The Exploration Development Incentive “will provide incentives for minerals exploration activity, with a focus on the small and mid-tier exploration sector,” the coalition said in a policy document.
The incentive will allow small to medium-size investors to deduct the expense of mining exploration against their taxable income.
The scheme will start for investments made from July 1, 2014, and will be capped at A$100 million ($95 million) in tax credits for exploration in previously unexplored areas, in an effort increase investment in the development of new resources.
“The mining boom will be rebooted,” Andrew Robb, minister for trade and Investment told local media.
“We will restore an appetite for risk and investment," he said.
”The move follow's new pm Abbott's bid to increase investment in the sector by abolishing the Minerals Resource Rent Tax and the Carbon Tax, which were introduced last year.
Australia is to offer tax breaks to mining and exploration companies in a bid to "reboot" the country's raw materials industry.