The federal government has missed an opportunity to reinforce support for Australia’s minerals exploration industry, with the 2025/26 Budget failing to extend a key incentive programme that has driven hundreds of millions of dollars in investment.

The Junior Minerals Exploration Incentive (JMEI), which has facilitated more than A$400-million in greenfield exploration since its inception in 2017, reached the end of its funding cycle last year. 

Industry advocates, including the Association of Mining and Exploration Companies (Amec), have been lobbying for its continuation, but Tuesday’s Budget was silent on any new commitment.

Amec CEO Warren Pearce expressed disappointment at the omission, saying it underscored a lack of long-term vision for Australia’s resources sector.

“After eight years of a successful programme, we’ve been working with the government to evolve the incentive to be even more impactful,” Pearce said. “We are expecting that both major parties will address measures in the upcoming election to support the exploration sector in Australia, because without exploration, you can’t find the mines of the future.”

The JMEI provides tax credits to investors in junior exploration companies, helping offset the high-risk nature of early-stage mineral discoveries. A report by consultancy firm BDO, commissioned by Amec, found that since its inception, the programme has cost taxpayers A$182.2-million but has delivered substantial economic benefits, including A$1.2-billion in capital raising, A$769-million in GDP contributions, and A$391-million in government revenue.

“Every dollar allocated results in more than A$2 spent on exploration activity and more than A$6 raised on capital markets,” Pearce said. “It makes great economic sense to provide incentives for explorers, so that discoveries have a chance of becoming a mine one day. In doing so, we deliver new jobs, royalties, and government revenues.”

Ahead of the federal election, Amec is pushing for a renewed and expanded version of the JMEI, calling for A$200-million in funding over four years, a permanent allocation in the Budget, and a shift to a merit-based selection process rather than the current ‘first in, first served’ approach.

While the Budget confirmed the government’s backing for the resources sector through the Critical Minerals Production Tax Incentive – the largest-ever commitment to critical minerals – Amec stressed that fundamental exploration funding must not be overlooked.

“We appreciate today’s Federal Budget puts cost of living front and centre. However, we also need to ensure the nation's long-term prosperity, with revenue from mining helping to underpin some of the announced cost-of-living measures,” said Pearce.

INCENTIVES
The government has legislated A$13.7-billion in hydrogen and critical minerals production tax incentives and has allocated A$1.5-billion in support for priority areas through the Future Made in Australia Innovation Fund, including A$750-million for green metals, A$500-million for clean energy technology manufacturing capabilities and A$250-million for low carbon liquid fuels.

The government is also helping to decarbonise heavy industries and building future competitiveness. The A$2-billion Green Aluminium Production Credit will support Australian aluminium smelters to transition to renewable energy, and the A$1-billion Green Iron Investment Fund will accelerate the development of this new industry.

The government is further backing the future of steelmaking in Whyalla by working with the South Australian government to provide immediate support for the Whyalla Steelworks.