Fiscal incentives

Australia’s declining oil production and declining exploration are of great concern. Clearly, new incentives are needed to increase exploration activity.

APPEA’s preferred exploration incentive is a flow-through shares scheme that would allow up-front tax deduction for investors to encourage them to put more money into exploration. A flow-through shares scheme has been used in Canada for nearly 20 years and is credited with dramatically lifting that country’s resources exploration activity. With access to capital restricted in the wake of the global financial crisis, the need for a flow-through share scheme is even greater than it was a few years ago.