AusBiotech has welcomed Labor Leader Bill Shorten's reply to the Abbott Government's second Budget.
While Tuesday's Budget confirmed the Government's intention to proceed with the 1.5 per cent cut in the R&D Tax Incentive, Mr Shorten laid out a vision for Australian innovation, with supporting policy.
According to Mr Shorten, a Labor Government will provide capital and support for innovation start-ups, STEM support, an aspirational R&D target, a 5 per cent corporate tax cut for small business and a $500 million Smart Investment Fund.
According to AusBiotech CEO, Dr Anna Lavelle, “Shorten has listened to industry on venture capital and commercialisation support and while the detail is yet to be revealed, Australians need to re-focus economic growth toward a thriving knowledge economy.”
“Australia must get smarter – or we will get poorer. I believe Australia can be the science, start-up and technology capital of our region: attracting the best minds, supporting great institutions and encouraging home our great expats,” Mr Shorten said. “We should aspire, together: universities, industry, the people and the Parliament to devote 3 per cent of our GDP to research and development by the end of the next decade.”
“Together, let us harness the power of science, technology, engineering and mathematics to prepare for the future.”
“A future of knowledge and service industries and advanced manufacturing, a nation of ideas and a country that makes things here…I want ideas born here, to grow up here and create jobs here.”
Mr Shorten said Labor will create a new, $500 million, Smart Investment Fund, to enable entrepreneurs to access the capital they need to start and grow their enterprises.
The Smart Investment Fund would partner with venture capitalists and fund managers to invest in early stage and high potential companies, providing a Commonwealth investment of up to 50 per cent of the start-up capital needed to help Australian companies commercialise innovations.
The Smart Investment Fund would open two rounds over the next five years, as a rolling program, with recipients able to access expert advice in commercialisation and access international networks.
“Our model has a definite, proven record of success both here and abroad,” he said.
Mr Shorten also announced StartUp Finance, which will work with the banks to establish a partial guarantee start-up loan scheme to enable entrepreneurs to access the capital to start and grow their enterprises.
“So many of our competitors for the jobs of the future already have a scheme of this kind in place: the UK, the US, France and Germany and Hong Kong is a leader in our region” he said, going on to invite the electorate to work with him on a “fair and fiscally responsible plan to reduce the tax rate for Australian small business from 30 to 25 per cent” rather than a 1.5 per cent cut.
“Three out of every four of the fastest growing occupations in Australia will require skills in science, technology, engineering and mathematics… We need to offer the most powerful incentive to Australians thinking about studying science and technology: a good job,” said Mr Shorten.
Dr Lavelle noted the timeframes and as always the detail, the timing and the execution are critical to the final impact of public policy. However the first step, which is identification of intent, is encouraging to see, she said.