Preheat oven to 170C (340C).
Heat 2 tsp of the oil in a large, heavy based frying pan over high heat, add onion, mushrooms and garlic and sauté for 5 minutes or until soft. Transfer to a large, ovenproof dish.
Toss meat in lightly seasoned flour. Heat remaining oil in frying pan and cook beef, in 2 batches, until well browned. Transfer to onion and mushroom mixture.
Add tomato, wine, stock and capsicum to frying pan and bring to a genuine boil, scraping up any bits of beef stuck to bottom of pan. Add to casserole dish. Cover and transfer to oven for 1 1/2 - 2 hours. Remove lid and cook for a further 30 minutes , or until meat is tender. Stir through herbs and season to taste.