Additional Items Allowed for Expenditure Claiming
Tenement Compliance: Exploration and Mining Licences - Mineral Resources (Sustainable Development) Act 1990
The former Department of Primary Industries recently conducted an investigation into the items allowed for claiming as expenditure for the purposes of complying with the expenditure covenant on exploration and mining licences granted under the Mineral Resources (Sustainable Development) Act 1990.
This investigation included a review of the expenditure requirements of other Australian states.
As a result of this review, the following items are now allowed to be claimed as expenditure.
- Aboriginal Heritage Surveys
- Equipment maintenance
- Accommodation- (claim should include details of the name, location and period of accommodation)
- Construction materials
These additional items are to be claimed under the category of “Overheads” on the return forms (Schedule 14 for exploration licences and Schedule 15 for mining licences).
Overhead costs should not exceed 20% of the total claim on each return.
All licensees should retain documentation which substantiates reported expenditure, in case an audit is conducted. Expenditure records should be retained for at least five years. Failure to maintain an expenditure level to the Department’s satisfaction may result in licence cancellation.
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