While the mining industry continues to be a strong contributor to Australia’s economy, it’s an industry that has unfortunately been hit by a bit of a decline recently.
As the mining industry is such a large source for Australia’s overall economic well being, the Coalition has stated that one of its policies while in office will be to take steps to help grow the industry and boost operations and employment numbers.
How the LNP will invest in mining
Intended to start in July, 2014, the main way in which the Coalition aims to help boost the mining industry and assist smaller companies involved within it is with a $100 million Exploration Development Incentive.
Announced by Minister for Industry Ian Macfarlane, the Exploration Development Incentive aims to get more people investing in mining exploration throughout Australia. It would also see an overall increased investment in mining geology.
The $100 million incentive will work in the form of offering investors the ability to deduct the costs of their investment based off their own taxable income, making investment more affordable and, ultimately, more appealing.
What this means for the mining industry
If the Coalition end up following through on this proposed policy, it could bring with it some great opportunities for more mining efforts and the discovery of more resource-based areas. By easing the costs that come with investing in something as admittedly expensive as mining exploration, this will help give the industry a boost in productivity and, hopefully, profitability.
Provided it is introduced, the Exploration Development Incentive could lead to great things for mining industry and Australia’s economy.