Austmine Urges Treasury to Recognize METS Innovation in Tax Concession

Austmine, the peak body for Australia's mining equipment, technology, and services (METS) sector, has urged the Federal Treasury to ensure that METS innovation is recognized under the proposed Innovative Business Capital Gains Tax Concession (IBCC), scheduled to take effect in July 2027.

The IBCC is designed to prevent broader capital gains tax reforms from inadvertently increasing taxes on investments in genuinely innovative, high-growth startups. While Austmine supports the measure's intent, it has called for refinements to better align with the longer development cycles common in the METS sector.

In its submission to Treasury, Austmine noted that the concession should apply broadly but target genuine innovation. The organization argues that innovation policy often favors traditional tech business models, overlooking the unique challenges of mining technologies.

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

Austmine recommends that METS innovation be explicitly included in the 15-year eligibility pathway Treasury is considering for deep-tech businesses. It also urges the government to assess companies based on their genuine innovative activity rather than industry classification, and to apply consistent principles through the IBCC's transitional arrangements.

Additionally, Austmine suggests that the proposed $10 million lifetime cap on eligible capital gains may reduce the concession’s effectiveness for larger, high-impact businesses and should be reconsidered.

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