A more productive and innovative Australian business sector should form the economic centrepiece of the 2019 federal election campaign for all sides of politics, according to a policy blueprint released today by the Australian Investment Council.
‘Investing for Growth – Policy Proposals for the Incoming Federal Government’ makes 13 recommendations that go to the heart of encouraging greater capital investment into Australian businesses that have the potential to help create a more prosperous economy and community in years to come. Amongst the recommendations are proposals to improve the structure of the tax system for new investment, funding of programs to help support expansion and productivity gains across the SME and large business sector, and changes to make Australia a more attractive destination for domestic and offshore institutional investment.
“The strength of Australia’s economy will increasingly become more dependent on our ability to support the growth and expansion of our unlisted business sector. Productivity gains and the creation of new employment opportunities will be driven by high-growth potential Australian businesses that can attract capital investment and strategic support from firms such as private capital funds,” according to Australian Investment Council Chief Executive, Yasser El-Ansary.
“We must act now to create the future we want for current and future generations of Australians, and that starts with ensuring we have the right policy settings that support business investment and encourage greater levels of research and development to catalyse our innovation potential,” he added.
The Australian Investment Council’s Investing for Growth blueprint recommends that the next incoming federal government should commit to:
1. Improving superannuation policy to incentivise greater emphasis on after-fee net returns
2. Maintaining certainty and openness of Australia’s foreign investment and trade policy regimes
3. Implementing a new limited partnership collective investment vehicle to encourage offshore investment
4. Enhance the R&D Tax Incentive Program to encourage investment in innovation
5. Introduce a world-class talent visa program to enable fast growth businesses to attract skilled talent from offshore to help grow the Australian economy, and
6. Encouraging greater levels of social impact investment in Australian social enterprises.
The $30B private capital industry invests billions of dollars each year into a wide range of businesses spanning every industry sector of the economy. Implementing policies in-line with the recommendations set out in the blueprint would help to expand the pipeline of capital available to support high-growth potential Australian businesses by improving their productivity and becoming more internationally competitive.
“This election campaign should be a contest of ideas by all sides of politics – we need our political leaders to outline a compelling vision for the future that demonstrates through evidence-based policy how we will lift standards of living through productivity, innovation and new employment opportunities. The next incoming federal government must embrace the opportunity to work closely with businesses to deliver a more prosperous Australia for current and future generations,” Mr El-Ansary said.
‘Investing for Growth – Policy Proposals for the Incoming Federal Government’