Australia’s mineral exploration gains face capital gains tax hurdle in Commodity News 04/06/2026 Australia’s mineral exploration expenditure rose year over year in the quarter ended March 31, government data showed, but industry fears a new federal tax could stifle the momentum amid volatile markets. Australian mineral spend rose 16.3% to A$949.3 million ($679.33 million) in the March quarter on the back of a 53.4% lift for gold to A$450.9 million, according to the Australian Bureau of Statistics data released June 2. The uptick was despite cyclical headwinds tempering the London Bullion Market Association price’s reaction to the Middle East war in March after new highs in January, according to an analysis by S&P Global Energy CERA. Yet industry fears this momentum would be stymied by the federal government’s May 12 proposal in the fiscal year 2026-27 (July-June) budget to replace the 50% central gains tax discount with cost base indexation for shares held by individuals, trusts and partnerships for more than 12 months, effective July 1, 2027. While lauding “companies getting on ground to drill in numbers” amid “strong commodity prices and global appetite for our resources … the real test will be the next quarter stats, as the dark shadow of the Federal Budget and CGT changes start to impact decision making,” Warren Pearce, CEO of the Association of Mining and Exploration Companies, said in a June 2 statement. “This is now the biggest challenge facing the mineral exploration industry,” AMEC’s statement said. “As investors start evaluating the risky nature of their portfolio allocations, we are already seeing companies take pause on their next steps. We’d expect to see the impact show up in future results.” “Whether it is [initial public offerings] put on ice or drill programs paused, we are at the start of this debate and already hearing and seeing a sizable change in the investment process.” State-by-state breakdown Western Australia, which has historically acc