The Association of Mining and Exploration Companies (AMEC) will be appearing before the Senate Economics Legislation Committee this afternoon from 4.45pm AEST, as part of the inquiry into the tax reform package.
AMEC will use its appearance to explain the impact of the proposed capital gains tax (CGT) reforms on mineral exploration.
Capital gains tax refers to tax paid on profits from disposing of assets, including investments such as property, shares, and crypto assets.
As this news service reported, in the 2026–27 Commonwealth Budget, the Australian Government proposed to remove the current 50% CGT discount that was first introduced in 1999. The discount allows taxpayers to reduce their taxable capital gain by half rather than adjusting for inflation.
The proposal also includes re-introducing CGT base indexation, as well as a minimum tax rate of 30%, which will apply to real capital gains occurring from 1 July 2027.
The key points of the appearance will involve mineral exploration serving as Australia’s original start-up, junior explorers being pre-revenue, and changes to CGT hurting pre-IPO companies.
The tax reform bill passed the House of Representatives on 4 June 2026. It has now moved to the Senate, where it was referred to the Senate Economics Legislation Committee.
Currently, the Australian Government does not have the numbers in the Senate to pass the bill and requires support of other parties. The Opposition, One Nation, and most independents or minor parties have opposed the bill. Meanwhile, the Australian Greens remains the most likely to support the bill in exchange for other concessions.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
