Austmine urges Treasury to recognise METS innovation

Austmine has called on the Australian Federal Government to recognise the innovation in industries such as mining equipment, technology and services (METS), to avoid being overlooked for the proposed Innovative Business Capital Gains Tax Concession (IBCC), slated for July 2027.

The IBCC, according to the Federal Treasury, is designed to prevent the government’s broader capital gains tax reforms from unintentionally increasing tax on genuinely innovative, high-growth start-up investment. Austmine acknowledges this intent but has recommended refinements to better reflect the longer development pathways common across the METS sector.

The Treasury’s consultation paper states that the concession is intended to “apply broadly across sectors but will be targeted to genuine innovative activity”. Austmine’s submission argues this same approach should be applied consistently throughout the wider METS sector.

Austmine chief executive officer Tony Davis said Australia’s METS sector is home to some of the world’s most innovative technology businesses, despite innovation policy often being developed around more traditional technology business models.

“Australia’s METS sector develops world-leading technologies that improve the productivity, safety and sustainability of mining operations around the globe,” Davis said. “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.”

With mining technologies often requiring extensive engineering, customer trials and validation in live operating environments before reaching widespread commercial adoption, Austmine has recommended that METS innovation be explicitly recognised within the 15-year eligibility pathway Treasury is considering for deep-technology businesses.

It has also urged the government to assess businesses according to their genuine innovation activity rather than their industry classification, while applying the same principles consistently through the IBCC’s proposed transitional arrangements.

Additionally, Austmine called for Treasury to reconsider the proposed $10 million lifetime cap on eligible capital gains, warning 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.”