Details
The Exploration Development Incentive (EDI) encourages shareholders to invest in small exploration companies undertaking greenfields mineral exploration in Australia.
This incentive allows eligible exploration companies to create exploration credits by giving up a portion of their tax losses from greenfields minerals expenditure and then distributing these exploration credits to the shareholders.
A superannuation entity or self-managed superannuation fund (SMSF) is entitled to a refundable tax offset where it has been an Australian resident for the whole income year and has received exploration credits.
If you are a superannuation entity or SMSF and have received exploration credits, the amount of the tax offset is the value of the exploration credits that you received during the income year. In the 2016 SMSF Annual Return, the amount should be included at Label E4.
Refer to the ATO website for more information.
Solution
EDI credits can be input as a tax adjustment prior to completing the year end Create Entries Process.
| From the Main Toolbar, go to Compliance. |
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| Select Period compliance from the list. |  |
| Select Tax Adjustment. |  |
Select Exploration Credit Tax Offset (E4) from the Tax Label section.
EDI credits will appear in Section D, Label E4 in The SMSF Annual Return.
See also: