Junior Minerals Exploration Incentive economic impact assessment

 

Project description

BDO was engaged to assess the economic impact of the Junior Minerals Exploration Incentive (JMEI), a federal program designed to stimulate investment in greenfield mineral exploration by junior exploration companies. The JMEI allows eligible companies to convert tax losses into exploration credits, which investors can use as tax offsets. The economic impact assessment evaluated the program’s effectiveness in increasing capital raising, exploration activity, and mineral production, and assessed its broader contribution to government revenue and GDP. The analysis covered JMEI allocations from 2017/18 to 2023/24 and included economic modelling, stakeholder surveys, and case studies.

BDO's role

As part of the engagement BDO:

• Analysed the relationship between incentive allocations, capital raising, and exploration activity using regression analysis to assess program effectiveness.
• Estimated the expected value of mineral production and broader economic impacts using financial and economic modelling.
• Assessed the fiscal implications for government revenue, including tax offsets from the program and projected returns.
• Conducted stakeholder surveys to capture industry perceptions and identify opportunities for policy design improvement.
• Analysed the economic impact on the Australian economy using computable general equilibrium modelling.

Project outcomes

BDO delivered an economic impact assessment that demonstrated the effectiveness of a targeted incentive program in support early-stage mineral exploration. The report identified key relationships between investment, exploration activity, and broader economic outcomes. Through financial modelling and stakeholder insights, the project also highlighted opportunities to improve the program’s design and delivery. Our client used the report to support discussions with government stakeholders.