Australia’s CGT concessions omit mineral exploration, industry warns of mining setbacks

Prime Minister Anthony Albanese and Treasurer Jim Chalmers announced on 18 June a $475 million capital gains tax (CGT) concession package aimed at small businesses, start‑ups and testamentary trusts. The reforms raise the small‑business active‑asset CGT concession from $2 million to $10 million and introduce new tax incentives for innovative firms.

The Association of Mining and Exploration Companies (AMEC) criticised the exclusion of mineral exploration from the carve‑outs, calling it a “kick in the guts” for the sector. AMEC warned that removing the 50 % CGT discount for junior exploration investors – to be replaced by inflation‑adjusted indexation and a 30 % minimum tax rate from July 2027 – will reduce funding for critical‑minerals projects, a sector where exploration spend has already fallen over 30 % in the past year. The industry argues this could hinder Australia’s ability to meet the International Energy Agency’s target for new lithium, nickel and cobalt mines needed for the green‑energy transition and sovereign capability.