Austmine urges Treasury to recognise METS innovation

Austmine has called on the Australian Federal Government to ensure that the mining equipment, technology and services (METS) sector is explicitly recognised under the proposed Innovative Business Capital Gains Tax Concession (IBCC), which is set to take effect in July 2027.

The IBCC is designed to prevent broader capital gains tax reforms from inadvertently increasing tax on genuinely innovative, high-growth start-ups. While Austmine supports the intent, it has recommended refinements to account for the longer development cycles typical of METS innovations.

According to Austmine chief executive officer Tony Davis, Australia’s METS sector develops world-leading technologies that improve mining productivity, safety and sustainability globally. However, innovation policy often defaults to software or biotech business models. Davis noted that unlike many software ventures, developing new mining technologies can require years of engineering, testing and validation before commercial success.

In its submission to the Treasury, Austmine urged that METS innovation be explicitly recognised within the 15-year eligibility pathway being considered for deep-technology businesses. It also called for assessments based on genuine innovation activity rather than industry classification, and for consistent application through the IBCC’s transitional arrangements.

Additionally, Austmine asked the Treasury to reconsider the proposed $10 million lifetime cap on eligible capital gains, warning that it could reduce the concession’s effectiveness for larger, high-impact METS firms.

“Australia’s innovation ecosystem extends well beyond software, digital and biotech businesses,” Davis said. “Getting the policy settings right will help ensure those businesses continue to innovate, attract investment and grow.”