To urge an 'ideas boom' in Australia, Prime Minister Malcolm Turnbull announced the government's A$1.1 billion package ($806 million) to help startups create innovations, marking the country's shift from mining to tech. The four-year plan includes income tax rebate schemes for retail investors and capital gains tax reduction for new businesses.
To encourage startup and serial entrepreneurs towards more investments, bankruptcy law variations will also be implemented. Australia will also update migration laws to help hire top talents.
"We have to work swiftly and nimbly and government has to lead the way. The ideas boom is the next boom for Australia," said Turnbull, who used to be a tech businessman.
The mining boom has successfully upheld the country's economy for over 10 years. However, the investment stage of the country's mining boom is slowly losing its heat, leaving Australia with a hard transition from mining to tech. While iron ore and coal exports will continue to be Australia's top exports, the country is way behind other world economies who are reaping the rewards of tech innovation exports.
Compared to other tech hubs, Australia's attitude towards investment risks is poorer. This means startup companies and new businesses in the country often go bust due to lack of capital for growth and expansion.
Turnbull explained that companies who embrace the spirit of innovation have higher chances of growing its market share and employment capacity. Innovative companies are also more competitive.
"It's a credit to the government that it has listened to the needs of its stakeholders on this topic," said Peter Bradd, chief executive officer of the advocacy group StartupAUS. Bradd added that startup companies own one of the strongest voices in the process, which results in effective measures that will give a boost to economic and employment growth.
Innovation and Science Agenda also raked in praise from Internet Australia who said the move will help the country to become more inventive country. CEO Laurie Patton said Australia must employ a collaborative approach to make the country a major player in the global economy of the future.
