Austmine urges Treasury to recognise METS innovation

Austmine, the peak body for Australia's mining equipment, technology and services (METS) sector, has urged the Federal Government to explicitly recognise METS innovation within the proposed Innovative Business Capital Gains Tax Concession (IBCC), due to take effect in July 2027.

The IBCC is designed to prevent broader capital gains tax reforms from inadvertently increasing tax on genuine high-growth start-up investments. However, Austmine argues that the current eligibility pathways fail to account for the longer development timelines common in mining technology, which often require years of engineering, testing and validation before commercial success.

In its submission to Treasury, Austmine recommended that METS innovation be explicitly included in the 15-year eligibility pathway being considered for deep-technology businesses. The organisation also called for assessments based on genuine innovation activity rather than industry classification, and for consistent application of the same principles during transitional arrangements.

Austmine CEO Tony Davis emphasised that Australia's METS sector develops world-leading technologies that improve productivity, safety and sustainability in mining globally. "Unlike many software businesses, developing new mining technologies can take years of engineering, testing and validation before they reach commercial success. Innovation should be recognised by what a business does, not simply the industry it serves," Davis said.

Additionally, Austmine questioned the proposed $10 million lifetime cap on eligible capital gains, suggesting it may reduce the concession's effectiveness for larger, high-impact businesses. The body urged Treasury to reconsider this limit to better support high-value innovation.

"Australia's innovation ecosystem extends well beyond software, digital and biotech businesses. The METS sector has built a global reputation for solving complex mining challenges and exporting Australian innovation. Getting the policy settings right will help ensure those businesses continue to innovate, attract investment and grow," Davis added.