Austmine urges Treasury to recognise METS innovation
Austmine calls on the Australian government to ensure the proposed Innovative Business Capital Gains Tax Concession recognizes the unique innovation pathways of the mining equipment, technology and services (METS) sector.
Austmine, the peak body for Australia’s mining equipment, technology and services (METS) sector, has called on the Federal Treasury to explicitly recognise innovation in the industry under the proposed Innovative Business Capital Gains Tax Concession (IBCC), scheduled to take effect in July 2027.
The IBCC is designed by Treasury to prevent broader capital gains tax reforms from inadvertently increasing tax on genuinely innovative, high-growth start-up investments. While Austmine supports the intent of the measure, it has recommended refinements to better reflect the longer development pathways common across the METS sector.
In its submission to Treasury, Austmine argued that METS businesses often require years of engineering, testing, and validation in live mining environments before achieving commercial success—a timeline that differs significantly from software or digital startups. The association therefore urged that METS innovation be explicitly included within the 15-year eligibility pathway being considered for deep-technology businesses.
“Australia’s METS sector is home to some of the world’s most innovative technology businesses, yet innovation policy is often developed around more traditional technology business models,” 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 recognised by what a business does, not simply the industry it serves.”
Austmine also recommended that the government assess businesses based on their genuine innovation activity rather than their industry classification, and that the same principles be applied consistently through the IBCC’s proposed transitional arrangements.
Additionally, the association called on 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 businesses.
“Australia’s innovation ecosystem extends well beyond software, digital and biotech businesses,” Davis added. “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.”