Changes to the Business Innovation and Investment Program announced today will provide an important flow of capital to support fast-growth business throughout every sector of the Australian economy, said Yasser El-Ansary, Chief Executive of the Australian Investment Council.
“Australian jobs rely on a steady flow of domestic and offshore capital to support investment into growing businesses across all industries and regions within our nation.
“Increasing the venture capital and private equity component within the regime from 10% to 20% will provide direct benefits to job creation and growth through the development and expansion of innovative companies which will provide flow-on advantages to the economy.
“The private capital industry has been a consistent and significant contributor to economic activity and job creation through the role of investment capital being deployed to support the growth and expansion of thousands of Australian businesses across every sector of the national economy,” Mr El-Ansary said.
Australia’s private capital industry represents 2.6 per cent of Australia’s GDP output each year, and private capital-backed businesses create 1 in 9 new Australian jobs.[1]
The Australian Investment Council’s own analysis shows that the VC sector alone is a large potential employer of highly-skilled jobs that are aligned to the future knowledge-based economy.
The portfolio companies of eight of Australia’s most active venture capital firms had 1478 job vacancies at the end of December 2020. [2] Information Technology dominates job vacancies with 300 positions available (20.3%) and when combined with Software as a Service positions, they represent one quarter of the available jobs. Graphic Design & Marketing showed the next highest job vacancies (265 positions, 17.9%), followed by Health & Medical Services (182 positions, 12.3%), and FinTech (56 positions, 2.6%).
“Over the past decade, venture capital has been at the forefront of driving innovation through investment into businesses supported by new technologies in areas such as FinTech, cyber security, food technologies and health and medical services.
“With a clear path to permanent residency, significant investors are likely to continue to invest into Australian businesses for the long term after they have met the visa requirements. These are the small to medium-sized businesses that will generate real jobs and economic growth,” Mr El-Ansary said.
The Council has also welcomed consistency in the Complying Investment Framework for the Significant Investor and Investor Visa streams.
“Using the same recommended investment criteria for both visas will ensure Australia gets the best possible deal through injecting capital into businesses that are best-positioned to create jobs and directly contribute to economic growth,” said Mr El-Ansary.
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[1] Deloitte Access Economics (2018) Private equity: Growth and Innovation, April
[2] Australian Investment Council Analysis, 31 December 2020
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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