The government just released its new plan to boost Australia’s innovation, productivity and competitiveness.
The plan has three aspects to it: 1) for the local industry to win more jobs in Australia; 2) for the local industry to win more jobs abroad; 3) to assist SMEs to grow and create new jobs.
The key initiatives are:
1) Local industry to win more jobs in Australia
– Legislating Australian Industry Participation (AIP) arrangements, requiring major projects worth $500 million or more to implement AIP Plans to give local industry opportunities to win work on a commercial basis.
– Requiring projects worth $2 billion or more that apply for concessions under the Enhanced Project By-Law Scheme to embed Australian Industry Opportunity officers within their global supply offices.
– Reforms to the anti-dumping system to provide stronger protection for Australian industry against unfair competition from overseas.
2) Local industry to win more jobs abroad
– More than $500 million in establishing up to 10 Industry Innovation Precincts to drive business innovation and growth in areas of Australian competitive advantage.
– Precincts will bring firms, research institutions, technology experts and business service providers together to achieve the innovations, connections and scale our businesses need to succeed in the future.
– A new Industry Innovation Network will allow businesses around Australia, including in regional areas, to take part in Precinct activities, gaining access to knowledge, support, services and partnerships regardless of their location.
– The first two Precincts will be a Manufacturing Precinct with locations in South East Melbourne and Adelaide and a Food Precinct headquartered in Melbourne.
3) Assist SMEs to grow and create new jobs
– A new $350 million round of the Innovation Investment Fund to stimulate private investment in innovative Australian start-up companies.
– Changes to venture capital tax arrangements to improve clarity and certainty for investors and encourage participation by “angel” syndicates.
– A new Growth Opportunities and Leadership Development (GOLD) initiative to provide focused support for SMEs with high‑growth potential.
– Extending the Enterprise Connect program for SMEs to more manufacturing firms and to new sectors like professional services, information and communication technologies, and transport and logistics, improving the productivity of businesses in key enabling sectors for the broader economy.
– A new Enterprise Solutions Program to help SMEs develop solutions to public sector needs and become better equipped to win work through public tenders.
The downside to these initiatives, is that the $1 billion expenditure will be derived changes to the R&D Tax Incentive. Companies with a Australian based turnover of $20 billion or more will no longer be eligible to claim the R&D Tax Incentive. According to government sources, this will only have an impact on 15-20 firms.
This change does not apply to any other business currently eligible to claim the R&D Tax Incentive.
For more information please contact Saving Point on 03 9555 3551 or [email protected]
