Austmine Urges Treasury to Recognise METS Innovation
Austmine calls on the Australian government to explicitly include METS innovation in the proposed Innovative Business Capital Gains Tax Concession, warning that current policy overlooks the sector's unique development timelines.
Austmine, the leading industry body for Australia's mining equipment, technology and services (METS) sector, has called on the Federal Government to explicitly acknowledge METS innovation in the upcoming Innovative Business Capital Gains Tax Concession (IBCC). The IBCC, scheduled to take effect in July 2027, is designed to prevent broader capital gains tax reforms from inadvertently increasing taxes on genuine innovative start-up investments.
While Austmine supports the intent of the measure, the organisation has recommended refinements to better reflect the longer development cycles common in the METS sector. According to Austmine CEO Tony Davis, Australia's METS sector produces world-leading technologies that enhance productivity, safety and sustainability in mining operations globally. However, policy frameworks often cater to traditional tech business models.
"Unlike many software businesses, developing new mining technologies can take years of engineering, testing and validation before reaching commercial success. Innovation should be recognised by what a business does, not simply the industry it serves," Davis said.
Austmine's submission to the Treasury urges that METS innovation be explicitly included within the 15-year eligibility pathway being considered for deep-technology businesses. The industry body also recommends assessing businesses based on genuine innovation activity rather than industry classification, and applying consistent principles throughout the IBCC's transitional arrangements.
Additionally, Austmine has called for reconsideration of the proposed $10 million lifetime cap on eligible capital gains, warning that it may diminish the concession's effectiveness for larger, high-impact businesses. Davis emphasised that Australia's innovation ecosystem extends beyond software, digital and biotech, and that 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," he added.
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