Minerals exploration spending in Victoria will be put at risk by massive new fee hikes on exploration licence application and renewal fees announced today.
Victoria already charges the highest exploration licence application fee and the second highest exploration licence renewal fee of any state or Territory.
Now the government is planning to increase exploration licence fees by 40% and work plan fees by an extraordinary 400%.
Every dollar in government fees, charges and taxes is a dollar less put into the ground in exploration, which is the lifeblood of the future Victorian minerals sector.
Mining exploration is already under pressure from adverse capital gains tax changes by the Federal Government which would reduce investor returns in junior exploration companies by 19 per cent.
Much of Victoria is underexplored for gold and critical minerals. Applying full cost recovery is harsh for exploration companies that work to find resources which are then subject to royalties.
Mining already pays all state taxes and charges paid by other businesses as well as a range of additional taxes and charges - paying more than $130 million in state government payments in 2024-25.
Mining and exploration paid $7.1 million in regulatory fees to the Victorian Government in 2024-25, including $2 million in regulatory charges and $5 million in rents.
Instead of punishing our world-class explorers with high fees, fee increases should be linked to service improvements and delayed until 2027 when regulatory reforms under the Mineral Resources (Sustainable Development) Act remove work plans and replace them with a less process intensive duties-based model.
The Victorian Government and Opposition should implement MCA Victoria's policy proposal to introduce co-funded exploration grants on offer in other states, given that Victoria is the only jurisdiction without a competitive grants program to encourage exploration spending.
When combined with the Federal Government's damaging capital gains tax changes, Victoria's failure to provide exploration grants and the prospect of massive fee hikes will discourage mining exploration in Victoria.
MCA Victoria will work to overturn these fee proposals and ensure a sensible outcome which provides for fair fees while encouraging vital minerals exploration.
