{"id":32666,"date":"2023-10-20T14:28:41","date_gmt":"2023-10-20T14:28:41","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/startup-sector-pushes-big-three-reforms-startupsmart\/"},"modified":"2023-10-20T14:28:41","modified_gmt":"2023-10-20T14:28:41","slug":"startup-sector-pushes-big-three-reforms-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/startup-sector-pushes-big-three-reforms-startupsmart\/","title":{"rendered":"Startup sector pushes big three reforms – StartupSmart"},"content":{"rendered":"
Founders and investors have welcomed the first policy recommendations put to the government by StartupAUS,<\/a> saying they would help drive the startup ecosystem by creating local jobs and a culture that embraces risk and entrepreneurialism. <\/p>\n \u00a0<\/p>\n StartupAUS CEO Peter Bradd last Friday presented new Minister for Industry, Innovation and Science Christopher Pyne with three key short-term policy changes aimed at increasing the availability of capital and talent.<\/p>\n \u00a0<\/p>\n The policies include:<\/p>\n * The implementation of income and capital gains tax incentives for early-stage startup investments<\/p>\n * The doubling of R&D tax concessions for startups<\/p>\n * Bringing the mining sector\u2019s director liability exemption to tech companies<\/p>\n \u00a0<\/p>\n \u201cThere are a small number of top priority measures which could have an immediate positive impact on our innovation economy,\u201d Bradd says.<\/p>\n \u00a0<\/p>\n \u201cWith the right policy settings we can build an agile, innovative economy capable of taking advantage of the enormous opportunities technology is creating.\u201d<\/p>\n \u00a0<\/p>\n Sendle co-founder<\/a> and CEO James Moody says the policies are targeted at making Australian startups more competitive at a global level.<\/p>\n \u00a0<\/p>\n \u201cIt\u2019s creating a climate that accepts risk and fosters entrepreneurship, and that\u2019s a good place to start,\u201d Moody says.<\/p>\n \u00a0<\/p>\n \u201cFor Australia to compete we need to be able to match risk and reward and find ways of encouraging the startup space.<\/p>\n \u00a0<\/p>\n \u201cThe theme is how to incentivise or lower the barriers for people to take a risk, and that\u2019s absolutely what we want to be doing.\u201d<\/p>\n \u00a0<\/p>\n <\/b><\/p>\n StartupAUS has recommended that the research and development concessions available for startups be doubled in order to increase employment and competitiveness. They say this can be done by reducing the rate available to larger, more established companies.<\/p>\n \u00a0<\/p>\n Founder of Job Capital<\/a> and Inspiring Rare Birds<\/a> Jo Burston says these changes would allow her to hire more developers within Australia, rather than looking abroad.<\/p>\n \u00a0<\/p>\n \u201cI\u2019ve developed my software in offshore locations with Australian management,\u201d Burston says.<\/p>\n \u00a0<\/p>\n \u201cI would love to be able to employ more Australian developers, but the costs eliminate that as a prospect at the moment.<\/p>\n \u00a0<\/p>\n \u201cDoubling the R&D would give us the opportunity to employ more Australians to build our business from Australia. It\u2019d mean we wouldn\u2019t have to look for cost-effective labour offshore while in the MVP or high-growth development phases.\u201d<\/p>\n \u00a0<\/p>\n This change could have a wide-ranging positive impact on the Australian startup ecosystem and economy, Burston says.<\/p>\n \u00a0<\/p>\n \u201cIf a lot of small businesses can have incentives to produce innovation and technology on-shore then that will help us overcome the labour laws that restrict us from being able to employ very expensive developers in Australia.\u201d<\/p>\n \u00a0<\/p>\n <\/b><\/p>\n The government was also advised to create income and capital gains tax incentives for early-stage startup investments in order to fill the funding gap at the seed stage of a company\u2019s formation.<\/p>\n \u00a0<\/p>\n StartupAUS points to the UK\u2019s Seed Enterprise Investment Scheme as an example of how this can help startups grow and access capital.<\/p>\n \u00a0<\/p>\n This would help improve the angel investing landscape in Australia, angel investor Renata Cooper says.<\/p>\n \u00a0<\/p>\n \u201cThese policy action points are great and will definitely encourage more people to invest in startups \u2013 especially in the high-risk seed and angel investment space,\u201d Cooper says.<\/p>\n \u00a0<\/p>\n \u201cKnowing tax concessions are in place will bring more investors into the mix.\u201d<\/p>\n \u00a0<\/p>\n It\u2019s about pushing these wealthy individuals towards startups, angel investor and start up founder Dean McIvor says.<\/p>\n \u00a0<\/p>\n \u201cAt a time when they\u2019re trying to take the heat off the housing market it makes sense to give incentives to an industry that can create jobs and help build new and valuable things in the world,\u201d McIvor says.<\/p>\n \u00a0<\/p>\n \u201cInvestors want a tax effective way to put their money to work, and property has been that way. But this provides an incentive for money to flow into startups.\u201d<\/p>\n \u00a0<\/p>\nKeeping tech jobs in Australia<\/b><\/h2>\n
Tackling risk-aversion<\/b><\/h2>\n