SYDNEY: Tonight’s Federal Budget creates a new platform to support the
acceleration of investment into the innovation economy, leading to the
creation of new industries and jobs to drive our future economic growth,
according to the Australian Investment Council’s Chief Executive, Yasser
El-Ansary.
“Australia’s public health response to the pandemic has created a
competitive edge from an economic viewpoint – tonight’s budget maps out a
sensible pathway forward for how we can accelerate a new wave of business
investment into our innovation economy.
“We wanted to the see the government take steps in tonight’s budget to make
the innovation economy a priority for our future economic growth, and
pleasingly we've seen the government take decisive action to do just that.
“The new Digital Economy Strategy, along with announcements about measures
to attract more global talent, and changes to our investment regimes and
tax incentives such as the ‘patent box’ will create opportunities for
domestic and offshore investment capital to support the economy – which is
essential for our future prosperity,” said Mr El-Ansary.
Comments about specific measures contained in tonight’s Federal Budget
are included below.
Patent support for medical and biotech technologies
“The implementation of a new ‘patent box’ regime from July 2022 will
encourage investment into Australian medical and biotech research
discoveries. Australia has the capacity to be a world leader in medical
technologies and this new regime has the potential to play an important
role in accelerating our commercialisation pipeline.
“The Council looks forward to working with Government on the development of
the patent box regime announced tonight to ensure that the new framework
delivers significant new gains to the innovation economy.”
ATO early engagement services for businesses investing in Australia
“A new tax office ‘concierge’ system will contribute to investment
certainty and confidence to support offshore investors. As a net importer
of capital, Australia is reliant on offshore capital to grow our home-grown
businesses backed by private capital investment.
“This is new regime could assist offshore investors to navigate Australia's
complex investment and tax regimes and to provide them with a degree of
certainty on how Australia's laws will apply to their specific situations.
“This is a complex initiative, and we will do everything possible to ensure
that the service delivers high value to offshore investors coming into
Australia.”
ESVCLPs and VCLPs
“The Council supports the review of the Venture Capital Limited Partnership
(VCLP) and Early-Stage Limited Partnership (ESVCLP) regimes announced as
part of the new Digital Economy Strategy and looks forward to working with
government on the review to identify how the rules can be modernised to
help create a more competitive and innovative Australian economy,” Mr
El-Ansary said.
Employee Share Schemes
“The Australian Investment Council welcomes the changes announced to the
taxation of Employee Share Schemes. These schemes play a particularly
important role in remunerating and incentivising staff of early-stage
innovative businesses who often have limited financial and cash resources,
but need access to highly skilled labour to help realise a vision and to
become large global businesses over the long-run.”
Collective Investment Vehicles
“Australia’s capacity to attract inbound investment through the
introduction of a Corporate Collective Investment Vehicle that is
competitive with other jurisdictions is an important policy announcement.
“World-class competitive Collective Investment Vehicles (CIVs) are
essential for building and expanding the pool of capital that can be
attracted into the Australian economy.
“We call on the government to move to introduce the Limited Partnership
Collective Investment Vehicle once the Corporate CIV is finalised. A new
Limited Partnership CIV will lead to a significant lift in private capital
investment into Australia from domestic and offshore sources, which will
drive new innovation and an acceleration in our transition towards a more
knowledge-based economy.”
Global Talent
“The work of the Global Business and Talent Attraction Taskforce is an
important step towards supporting the rebuilding of business activity
across the Australian economy following the COVID-19 downturn,” Mr
El-Ansary said.
“The fast-tracking of permanent residency for 5,000 people a year through
the Global Talent and Temporary Activity visas will modernise the framework
for individual tax residency.
“To be internationally competitive, highly innovative fast-growth
Australian businesses need access to world leading talent in key areas
where we are still building local capability. We’ve seen too many examples
over the years of domestic businesses that cannot access talent and capital
being forced to relocate overseas, taking with them highly skilled jobs and
economic activity.
“As we rebound out of the COVID-19 downturn we must ensure that the
economic recovery is underwritten by big gains in innovation and technology
to drive increased productivity. Attracting the world’s best businesses and
talent to Australia will help boost our domestic productivity and our
global competitiveness.
“Skills and talent are the lifeblood of growing and innovative businesses.
Australia has a unique opportunity to be a destination of choice for high
calibre talent through its attractive lifestyle, stable political system
and future growth opportunities,” Mr El-Ansary said.
Other important measures announced tonight include an SME Recovery Loan
Scheme for SMEs to access additional funding or refinance existing loans at
a lower interest rate, and an extension of the JobTrainer Fund until 31
December 2022 with support for training in digital skills and upskilling in
critical industries like aged care.
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For an interview with Yasser El-Ansary please contact:
Robyn Tolhurst
Public Affairs Manager
[email protected]
M: 0436 388 919
About the Australian Investment Council
The Australian Investment Council is the voice of private capital in
Australia. Private capital investment has played a central role in the
growth and expansion of thousands of businesses, which when combined
represents a multi-billion-dollar contribution to the Australian economy.
Our members are the standard-bearers of professional investment and
include: private equity, venture capital and private credit funds,
alongside institutional investors such as superannuation and sovereign
wealth funds, as well as leading financial, legal and operational advisers.
The Australian Investment Council requests its name always appear in full and not abbreviated or as an acronym.
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