Prime Minister Malcolm Turnbull on Monday unveiled a A$1.1 billion ($806 million) package to boost innovation in Australia, using his first major economic policy statement since becoming leader to map out a pathway beyond the country’s fading resources boom.
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Giant puppets representing Australian Prime Minister Malcolm Turnbull (L) and his predecessor Tony Abbott parade in front of the Sydney Opera House during a rally held ahead of the 2015 Paris Climate Change Conference, known as the COP21 summit, in Sydney’s central business district, Australia.
Australia faces a hard transition with the winding down in the investment phase of the lucrative mining boom that has sustained its economy for more than a decade.
He also promised better research collaboration which the country ranks last or second to last for among OECD countries.
Turnbull said appetite for risk in Australia was lower than in comparable countries.
To help fix this, new tax breaks for early stage investors in start-ups will be offered, giving them a 20 percent non-refundable tax offset based on the size of their investment, as well as a capital gains tax exemption.
Insolvency laws, which now focus on penalising and stigmatising business failure, will also be reformed, said Treasurer Scott Morrison.
“The more high-quality, effective, productive enterprising entrepreneurs we can attract, the better”.
Asked on the ABC’s 730 program whether a cut in the company tax rate would help businesses to innovate and drive growth, Mr Turnbull said: “It would be a way, but I think the problem is affordability”.
He added that companies that embraced innovation were more competitive and more likely to create jobs.
“This elevates science and innovation to the very highest levels of government consideration, alongside the National Security Committee”, said Science and Technology Australia chief executive Catriona Jackson.
Business Council of Australia president Catherine Livingstone said the innovation agenda conveyed a positive and realistic ambition for what Australia could be.
“We have to work swiftly and nimbly and government has to lead the way”, said Turnbull, a multimillionaire and former tech businessman.
“We will learn from them”.
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The government said the new tax incentives – which are expected to be in place by early 2016 – will combat the so-called “Valley of Death” (the period between the initial funding of a start-up and when it starts generating revenue).
