Austmine urges Treasury to recognise METS innovation

Austmine calls for recognition of METS innovation in tax concession

Austmine, the peak industry body for Australia's mining equipment, technology and services (METS) sector, has urged the Federal Government to ensure that the sector's innovation is not overlooked in the proposed Innovative Business Capital Gains Tax Concession (IBCC).

The IBCC, which is scheduled to take effect from July 2027, is designed to prevent unintended tax increases on genuinely innovative, high-growth start-ups as part of broader capital gains tax reforms. 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 the Treasury, Austmine argued that innovation policy is often developed around traditional technology business models, which can disadvantage sectors like METS. Tony Davis, Austmine's chief executive officer, said the sector is home to some of the world's most innovative mining technology businesses.

"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."

Austmine has recommended that METS innovation be explicitly recognised within the 15-year eligibility pathway that Treasury is considering for deep-technology businesses. The industry body also urged the government to assess businesses based on their genuine innovation activity rather than their industry classification, and to apply the same principles consistently 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 submission underscores the need for the IBCC to be inclusive of all sectors that demonstrate genuine innovation, particularly those with long development and commercialisation cycles.