Australia's $1B innovation Initiative
The Most valuable capital is human capital, which is why we need recruit, train and maintain this amazing resource!
We need to create an environment where companies , entrepreneurs can innovate, take risks and be supported by private industry, and for these supporters to be applauded and rewarded.
The 4 pillars of the Innovation Package:-
– Culture and Capital,
– Talent and Skills, and
– Government as an Exemplar.
– entrepreneur visas – encourage talent to come to Australia
– cash for CSIRO,
– tax breaks,
– Education as a key pillar
– Changes to bankruptcy laws – easier to fail
– Cgt exemption for investors in startups with 3yr + gestation
– Generous income tax rebates for retail investors
– Funding to align and connect university research to business
– Encourage smes to bid for it work for government
The package’s major initiatives are:
- $106 million in tax incentives for “angel” investors, who provide seed funding in the early years of a venture’s creation
- $75m to the CSIRO’s data research arm Data 61
- $30m for a Cyber Security Growth Centre to create business opportunities in cyber security, which the Government spends $5b on each year
- $15m over four years towards a $200m CSIRO Innovation Fund
- $10m over four years towards a $250m Biomedical Translation Fund, in partnership with the private sector
The tax incentives for investors will be modelled heavily on the United Kingdom’s Seed Enterprise Investment Scheme.
Investors will be able to get a 20 per cent tax offset, rather than a deduction and a capital gains tax exemption. The offset model has been chosen instead of a deduction as it benefits people more evenly across income groups. This will cost $106 million over four years, with most funding kicking in after 2017. For example if someone invests $200,000 and claims the offset they will reduce their income tax by $40,000. Then if the investor sells their shares three years later, their initial $200,000 will be exempt from capital gains tax. The aim is to encourage more private sector investment in start-ups,
(My view is this will cost +$1b and will be money well spent!! )
University funding incentives for business to make greater use of the university sector, making use of the 70pc of Australia’s PHD students, the government will allocate $127 million over four years of research block grant funding towards collaboration between industry and universities. This includes new arrangements to measure the “non-academic impact and industry engagement” of universities, with the first national assessment due in 2018.
Visas: There will be a new entrepreneurs visa created to bring in international talent, and post-grad students with STEM or ICT talent . Visas will be fast-tracked for permanent residency to begin by November 2016. This will cost $1 million from 2015 to mid 2017
Offshore ‘landing pads’: The government will encourage Australian entrepreneurs to more easily travel to Silicon Valley, Tel Aviv and three other unknown locations, likely in Europe and Asia. This will cost $18 million over four years. This will be an interesting programme!!
If some of these policies are not as successful as we like, we will change them. We will learn from them. Because that is what a 21st century government has got to be,” said Prime Minister Malcolm Turnbull.