Austmine urges Treasury to recognise METS innovation

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

In a submission to Treasury, Austmine acknowledged that the IBCC aims to prevent broader capital gains tax reforms from inadvertently increasing taxes on genuinely innovative, high-growth start-up investments. However, the organisation warned that the current design risks overlooking the METS sector due to its longer and more capital-intensive development cycles.

"Unlike many software domain businesses, developing new mining technologies can take years of engineering, testing and validation before they reach commercial success," said Austmine CEO Tony Davis. "Innovation should be recognised by what a business does, not simply the industry it serves."

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

Additionally, Austmine called for reconsideration of 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 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."

The Treasury's consultation paper indicated that the concession would apply broadly across sectors but be targeted to genuine innovative activity, a principle Austmine supports and wants applied consistently to the METS sector.