In the first signature policy announcement since he took office as Prime Minister in September, Malcolm Turnbull outlined a four-year $1.1 billion package to drive an “ideas boom” in Australia.
The package includes more than 20 measures across four key themes: culture and capital, embracing risk and incentivising early-stage investment in start-ups.
The federal government’s premier science agency, the CSIRO, will receive a $100 million funding boost as part of the package, reversing some of the $110 million cut in the Abbott Government’s budget last year when more than 1400 employees were sacked.
‘More jobs, more growth’
Announcing the policy at the CSIRO in Canberra, Mr Turnbull said the Australian economy is in a transition period and the government needs to respond to what will drive prosperity.
"This statement is an absolutely critical part of securing our prosperity," he said.
He told reporters growing the economy through increased employment is the key priority of his government.
“We are absolutely committed to ensuring that our students have the skills to find high -wage and rewarding jobs regardless of their qualifications or career path,” he said.
“We are going to do this by promoting coding and computing in schools to ensure our students have the problem-solving and critical reasoning skills for the jobs of the future.
As part of the drive to encourage innovation in schools, the sector is to benefit from $48 million over five years spent on a range of programs from science prizes to encouraging preschoolers to explore maths and technology.
Capital gains tax burden lessened for start-ups
Start-ups are one of the big winners out of the innovation statement with exemptions to be given to investors from paying capital gains tax for 10 years if an investment is held for more than three years.
The Prime Minister says the tax concessions will encourage people to consider investing in new ventures instead of more traditional investments.
Innovation and Science Minister Christopher Pyne said the plan covers a broad range of areas.
“It is a very comprehensive statement. It covers over 24 different measures as large as a new CSIRO innovation fund, a biomedical translation fund; a new compact or partnership, if you like, between government and universities and business around research, development at universities,” he said.
“There are many different aspects to this: landing pads overseas, international collaboration, support for incubators.”
Special cabinet committee to promote innovation, science
The policy also includes a special cabinet committee to put innovation and science at the heart of policy making and a new board to be known as Innovation and Science Australia.
The new body's first job will be to review the existing research and development tax incentive program.
Businesses will have easier access to the $5 billion spent by the government on IT each year via a new digital marketplace.
The government will also take a new attitude to public data, making non-sensitive data available by default, potentially opening the way for a new wave of apps and other digital products.
It's estimated 4500 start-up firms miss out on equity finance each year.
To overcome this, early-stage investors will receive a 20 per cent non-refundable tax offset based on the amount of their investment as well as a capital gains tax exemption.
And insolvency laws will be overhauled in 2017 to allow businesses to take greater risks.
The bankruptcy period will be reduced from three years to one and firms will be allowed to enter a legal "safe harbour" to develop a turnaround plan.
More funding for medical research, university grants
A new CSIRO innovation fund will co-invest in new spin-off companies and existing start-ups that will develop technology from the science agency and universities.
Medical research will benefit from a $250 million biomedical translation fund.
Two major science projects - the Australian Synchrotron and the Square Kilometre Array - will be funded over the next decade to the tune of $814 million as part of a $2.3 billion plan to build world-class research facilities.
Two programs will replace the existing six research block grants which go to universities, topped up $127 million of new funding over four years.
A new entrepreneurs visa will bring into Australia up-and-coming talent and "landing pads" in Silicon Valley and other places.
- with AAP
