Austmine, the peak industry body for Australia's mining equipment, technology and services (METS) sector, has called on the federal government to recognise the unique innovation pathways of METS businesses in the proposed Innovative Business Capital Gains Tax Concession (IBCC), a measure designed to support genuine high-growth startups.

The IBCC, outlined in a Treasury consultation paper, aims to ensure that broader capital gains tax reforms do not inadvertently increase tax on innovative, high-growth investments. While Austmine supports the intent, it warns that the current proposal may overlook METS innovation due to its focus on traditional tech models.

Tony Davis, CEO of Austmine, emphasised that the Australian METS sector is home to world-leading technologies that enhance productivity, safety, and sustainability in mining globally. “Unlike many software businesses, developing new mining technologies can take years of engineering, testing, and validation before reaching commercial success. Innovation should be recognised by what a business does, not simply the industry it serves,” Davis said.

Austmine recommends that Treasury explicitly include METS innovation within the 15-year eligibility pathway being considered for deep-technology businesses. It also urges that businesses be assessed based on genuine innovation activity rather than industry classification, with consistent application across transitional arrangements.

Additionally, Austmine questions the proposed $10 million lifetime cap on eligible capital gains, arguing it could reduce the concession's effectiveness for larger, high-impact METS firms. “The Australian METS sector has built a global reputation for solving complex mining challenges. Getting the policy settings right will help ensure those businesses continue to innovate, attract investment, and grow,” Davis added.

The Treasury is expected to finalise the IBCC framework ahead of its July 2027 implementation date.