SYDNEY: The Australian Investment Council welcomes tonight’s federal budget
measures aimed at expanding the digital capability of businesses and
building a stronger innovation economy.
“The extension of the patent box regime to support AgTech and CleanTech and
the extension of the previously announced regime for Biotech companies is a
natural fit with industries where Australia has a competitive advantage in
the global economy,” said Australian Investment Council’s Chief Executive,
Yasser El-Ansary.
“This is consistent the Council’s views that a the regime proposed in last
year’s budget was too narrow.”
Comments attributable to Yasser El-Ansary about specific measures
contained in tonight’s Federal Budget are included below.
Foreign Investment
“The Australian Investment Council has long advocated that the foreign
investment review framework should focus on the key issues of concern to
government. Tonight’s announcement is a positive step which should ensure
that FIRB resources are appropriately directed and do not create a
pinch-point that prevents the efficient deployment of capital into the
economy.
“As an open economy dependent on attracting foreign capital, it is vitally
important that the process remains efficient and does not create unintended
consequences for passive investors into the Australian economy.
“The Council welcomes the introduction of measures which do not require
certain investors to notify the government before making an investment.
Employee Share Schemes
“The Australian Investment Council has long advocated for employee share
schemes which are competitive with other jurisdictions.
“While the changes announced to the employee share scheme regulatory
framework are a positive step at a time when there are critical skills
shortages in the innovation sector and when Australia is competing for
global talent, we await the details to ensure it meets the needs of
early-stage businesses who rely on share schemes to attract the best and
brightest talent.
“The Council has been constructively engaged over many months with Treasury
on the need for a more competitive employee share scheme regime and we
would hope the valuable feedback that we have provided will make it through
to any legislation introduced as part of the Budget sittings given the
government intends for the measures to commence on 1 July 2022.
“Employee share schemes are widely recognised as one mechanism to attract
and align the interests of skilled employees to high growth 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.”
REDSPICE (Resilience, Effects, Defence, Space, Intelligence, Cyber and
Enablers) package
“Cyber-attacks are becoming more prevalent across all spheres of
government, business and society as internet-capability beyond computers
and mobile phones into other cyber-physical or ‘smart’ systems is extending
the threat of remote exploitation to a host of new technologies which
underpin the everyday lives of Australians such as transport control
systems, power grids and industrial plants.
“The commitment to invest $9.9 billion over 10 years in doubling the
Australian Signal Directorate’s capacity will provide much needed
additional access to training and skills, as well as adjacent cybersecurity
industries and which should support greater investment into research and
the development of innovative solutions in Australia.”
University Research Commercialisation
“Strengthening collaboration between private sector firms and universities
is vitally important to ensure that Australia can continue to build its
innovative capacity to drive the next wave of economic growth for the
long-term. There is a significant economic payoff for the nation which
comes from nurturing fast-growth businesses built on relevant and industry
focussed university research, will create new industries and new high-value
jobs.
“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. This is reflected in recent research by the Australian
Investment Council which shows jobs in information technology or that are
technology driven, account for a large proportion of job vacancies in
venture capital-backed companies. Encouraging industry PhDs and
Fellowships, as well as investment in the Research Translation Start
Program are in spirit of collaboration which the private capital industry
has long been supporting.
Cost of living
“We welcome the Government’s recognition that cost of living pressures are
affecting many Australians. The private capital industry is very conscious
of its ESG obligations and the broader economic imperative in ensuring that
no Australians are left behind as the economy emerges from COVID19. We
therefore welcome the $250 one-off payment to Australian who receive
pensions and disability support payment. We also welcome the additional
$420 offset for low and middle income tax households.
“The Council welcomes the relief of the pressure on businesses and
households from increasing fuel prices through the temporary halving in the
fuel excise for six months. Australia’s post COVID-19 economic recovery
should not be flamed-out as a result of any global pressures on fuel and
the government’s action is consistent with what Australia’s competitors are
doing at this crucial and important time.
ENDS
To arrange an interview with Yasser El-Ansary, please contact:
Robyn Tolhurst
Public Affairs Manager
E: [email protected] | M: +61 436 388 919
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.