Andromeda Metals Limited (ASX: ADN) today announced it has received a tax incentive refund totalling $1.66 million. Andromeda Metals Limited is an industrial minerals company focused on the exploration and development of high-purity kaolin and halloysite projects, notably its Great White Project in South Australia. This significant refund follows the lodgement of the company’s tax return for the 2025 financial year, providing a cash rebate primarily due to the Research and Development (R&D) Tax Incentive program.
The refund stems from Andromeda expending $3.4 million in eligible R&D expenditure during the 2025 financial year. This incentive is supported by an Advance Finding awarded to Andromeda by the Australian Government’s AusIndustry. This finding confirms the company’s ability to claim refundable tax offsets, or cash rebates, for expenditure on activities related to the scaling up of product and process development under Stage 1A+ of the Great White Project. The Advance Finding is binding on the Australian Taxation Office (ATO) for three financial years, commencing with the 2024 financial year.
Under the R&D Tax Incentive, Andromeda is able to claim refunds at a rate of 43.5% of costs incurred on eligible expenditure over a three-year period. For the 2025 financial year, this applicable rate was 48.5%, reflecting the company’s corporate tax rate for that period. Eligible expenditures under Stage 1A+ are anticipated to collectively total approximately $26 million over the relevant period. Sarah Clarke, Andromeda’s Acting CEO, expressed satisfaction with the refund, stating, “Andromeda is pleased to receive this refund from the ongoing R&D tax incentive program, which is a valued contribution by the Australian Government to support innovation by industry. Continuing to receive close to half of the eligible expenditure spent is a great outcome for Andromeda and its shareholders.”
