- Media Release
Tania Constable, Chief Executive Officer
11 September 2026
Today’s abandonment of junior minerals explorers – left out in the cold by the Federal Government’s capital gains tax (CGT) changes – risks driving our world-class explorers offshore with higher taxes and reducing investor returns in this vital sector by at least 19 per cent.
The government claims that no government in Australia’s history has done more to support the resources sector.
Yet on top of axing the Junior Minerals Exploration Incentive, it has now added to the tax burden on junior minerals explorers who face the same or greater risk than the innovative startups recognised in the latest changes to the new CGT rules.
Without junior explorers there are no new mines, no future royalties, no future exports and no future critical minerals projects.
Australia should be making minerals exploration more competitive, not burdening this crucial sector with higher taxes.
The CGT settings now favour low-risk investments, depriving explorers of much-needed capital for the discovery of new minerals that will secure the future success and growth of Australian mining.
Investment in eligible early‑stage exploration is similar to investment in venture capital and start-ups, so should get comparable CGT treatment.
But the government’s changes to capital gains tax for junior minerals exploration companies will adversely impact the ability of these companies to raise funds from individual investors for crucial greenfields mineral exploration in Australia.
MCA analysis has found that under these changes, investors in junior exploration companies will have their return on investment after receiving capital gains reduced by 19 per cent.
Greenfields spending as a share of total exploration spending in Australian has declined from one-third over recent years to a quarter in the last financial year.
Crippling our junior explorers by increasing capital gains tax will slow the development of our critical minerals sector just when the world is demanding stronger supply chains and greater strategic resilience in minerals supply.