{"id":39074,"date":"2023-10-20T15:00:37","date_gmt":"2023-10-20T15:00:37","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/a-year-one-report-card-on-malcolm-turnbulls-innovation-agenda-startupsmart\/"},"modified":"2023-10-20T15:00:37","modified_gmt":"2023-10-20T15:00:37","slug":"a-year-one-report-card-on-malcolm-turnbulls-innovation-agenda-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/a-year-one-report-card-on-malcolm-turnbulls-innovation-agenda-startupsmart\/","title":{"rendered":"A year one report card on Malcolm Turnbull’s Innovation Agenda – StartupSmart"},"content":{"rendered":"
\"Turnbull\"<\/div>\n

Prime Minister Malcolm Turnbull\u2019s Innovation Agenda turned one this week and after a 12-month period that included a hard-fought election, cabinet reshuffles and over 100 announcements on policy progress, the small business and startup communities believe there\u2019s still more work to do.<\/p>\n

The Prime Minister is keen to drive home that innovation is still front of mind, saying it is \u201cthe key to unlocking productivity growth, which has remained stubbornly stagnant in recent years\u201d.<\/p>\n

\u201cInnovation is about so much more than technology startups,\u201d he wrote in an opinion article<\/a> in the\u00a0Australian Financial Review<\/em> today, slating the next stage of the plan as a major weapon against Australia\u2019s slowing productivity.<\/p>\n

When Turnbull unveiled the government\u2019s innovation agenda with then Minister for Industry, Innovation and Science Christopher Pyne on December 7, 2015<\/a>, he put the spotlight on startups to power Australia into another 25 years of growth.<\/p>\n

\u201cEven if their businesses don\u2019t succeed, we all benefit. We learned so much from the failure of new businesses,\u201d he said.<\/p>\n

There were 28 key policies<\/a> announced 12 months ago and the Australian business community has seen a rush of action over the past couple of weeks as developments were made on big ticket items before the clock ran out on 2016. On Wednesday afternoon current Minister for Industry, Science and Innovation Greg Hunt said that over the past 12 months \u201celements of the agenda have taken shape and are helping to drive a more prosperous future\u201d.<\/p>\n

As the year progressed the scope of the government\u2019s messaging broadened, from tech focused startups that needed nurturing in universities and incubator programs, to include\u00a0well-established SMEs ready for government contracts<\/a> or international expansion.<\/p>\n

So how did the government perform when it comes to embedding the policies announced last December, and what do the business community think is missing?<\/p>\n

Read more: Innovation Agenda released: SMEs among the winners<\/strong><\/a><\/p>\n

Key areas covered in 2016<\/h3>\n

Employee share schemes plan<\/h4>\n

What it is:<\/strong><\/span> Removing the requirements for small companies to have to provide public disclosure documents when offering employees equity in a company as part of their remuneration, which is difficult for early stage companies, and to consult on implementing employee share schemes more broadly.<\/p>\n

What\u2019s been done:\u00a0<\/strong><\/span>The Treasury Laws Amendment (Measures No.1)<\/em>\u00a0bill to remove the need for businesses to provide these documents publicly entered Parliament during the last sitting week earlier this month. A consultation paper that asked from submissions on the policy area closed this week.<\/p>\n

Business and innovation initiative<\/h4>\n

What it is:<\/strong><\/span> A $19 million scheme designed to improve the government\u2019s approach to contract procurement by inviting businesses to pitch to solve five policy challenges, with the winning applicants granted $100,000 to develop solutions, along with the opportunity for another $1 million in funding.<\/p>\n

What\u2019s been done:<\/span> <\/strong>Applications for the program closed on November 30, and the government has indicated the winners will be working on their prototypes over the next 18 months.<\/p>\n

Venture capital limited partnerships changes<\/h4>\n

What it is:<\/span> <\/strong>Expanding the scope of tax exemptions for those investing in early stage companies, including doubling the size of early stage venture capital limited partnerships from $100 million to $200 million, and a new 10% tax offset for partners in new projects.<\/p>\n

What\u2019s been done:<\/strong><\/span> These changes came into effect July 1, 2016.<\/p>\n

CSIRO innovation fund<\/h4>\n

What it is: <\/strong><\/span>A $200 million incubator program for startup companies, including $100 million of private investment capital.<\/strong><\/p>\n

What\u2019s been done:<\/strong><\/span>\u00a0<\/strong>The fund was launched at the start of the last parliamentary sitting week, with an announcement on December 4 that the fund will be led by Blackbird Ventures co-founder Bill Bartee<\/a>. It is expected to kick into action in 2017.<\/p>\n

Cyber security growth centre<\/h4>\n

What it is:<\/strong><\/span>\u00a0The government will allocate $31.9 million to the a cyber security growth centre over the next four years, which will aim to develop Australia\u2019s cyber security industry.<\/p>\n

\u201cIt will bring together industry, researchers and governments to create a national enterprise that will provide the foundation for the development of next generation products,\u201d Minister for Industry, Innovation and Science Greg Hunt said.<\/p>\n

What\u2019s been done: <\/strong><\/span>The project was launched on December 5 this year, with ex-Atlassian security chief Craig Davies to lead the centre<\/a>.<\/p>\n

Digital marketplace<\/h4>\n

What it is: <\/strong><\/span>In a format that resembles the Airtasker of government contracts, the digital marketplace will allow government departments to publish briefs with project requirements and suppliers can make direct pitches.<\/p>\n

What\u2019s been done: <\/strong><\/span>A beta version of the platform has been released and in October the government reported that $15 million worth of business projects had already been listed.<\/p>\n

Global innovation strategy<\/h4>\n

What it is:<\/strong><\/span> The government allocated\u00a0<\/strong>$36 million for four different incubator and startup projects focused on hubs overseas, including $11 million to establish a \u201cLanding Pad\u201d project so that early stage businesses can make connections in other startup-focused cities over a 90-day period.<\/p>\n

What\u2019s been done: <\/strong><\/span>The Landing Pad projects have commenced in Tel Aviv and San Francisco,<\/a> with grants for the \u201cGlobal Connection Fund\u201d also being delivered.<\/p>\n

Applications are open until January for the Regional Innovations Programme, which will give funding to businesses working with regional partners to solve problems facing the Asia-Pacific region.<\/p>\n

Improving insolvency laws<\/h4>\n

What it is:<\/strong><\/span> A review\u00a0a number of elements of Australia\u2019s insolvency laws to protect company directors from personal liability and encourage restructures rather than having companies placed in voluntary administration.<\/p>\n

What\u2019s been done: <\/strong><\/span>Submissions on proposed changes to reduce the current default bankruptcy period from three years to one year, introduce \u201csafe harbour\u201d provisions and change the application of \u201cipso facto\u201d clauses in contracts, closed on November 4. SmartCompany<\/em> understands from Treasury that the new regulations will be developed before the end of the year.<\/p>\n

Innovation and Science Australia<\/h4>\n

What it is: <\/strong><\/span>An independent body established to give government advice on science and innovation matters.<\/p>\n

What\u2019s been done: <\/strong><\/span>The legislation for this body received the Royal Asset in October 2016, and the board has been announced.<\/p>\n

The body will be chaired by Bill Ferris, with Chief Scientist Dr Alan Finkel as the deputy chair. Other members include Atlassian co-founder Scott Farqhaur and AirTree ventures partner Daniel Petre. See the full list of board members here.<\/a><\/p>\n

Intangible asset depreciation<\/h4>\n

What it is: <\/strong><\/span>Given the rise of startup companies holding a number of knowledge-based assets and IP, a new option was developed for companies to self-assess the tax effective life of any intangible assets they owned.<\/p>\n

What\u2019s been done: <\/strong><\/span>This came into effect on July 1, 2016.<\/p>\n

Equity crowdfunding changes<\/h4>\n

What it is: <\/strong><\/span>Changes to capital raising requirements that would allow entrepreneurs to raise equity from a number of individuals, up to $5 million, in exchange for equity in the business. \u00a0<\/strong><\/p>\n

What\u2019s been done:<\/strong><\/span> After a number of revisions, legislation for the government\u2019s equity crowdfunding regulations\u00a0was introduced in the Parliament at the end of November 2016. Read the details here<\/a>.<\/p>\n

Innovation visas<\/h4>\n

What it is:<\/strong><\/span> A new visa program that allows entrepreneurs who have at least $200,000 from a third party to come to Australia and develop projects, and new points added for skilled migration categories for individuals that have completed postgraduate study in Australia and want to stay on.<\/p>\n

What\u2019s been done: <\/strong><\/span>The visa changes commenced September 10, 2016. However, some members of the startup community have questioned whether the changes are broad enough.<\/p>\n

\u201cThe visas technically have a ticked checkbox next to them, but I\u2019d like to see that extended to better accommodate founding teams and experienced early-stage employees,\u201d says Girl Geek Academy chief executive Sarah Moran.<\/p>\n

\u201cLet\u2019s attract experienced hackers, hustlers and hipsters to be co-founders of Australian global companies.\u201d<\/p>\n

Startup tax offsets<\/h4>\n

What it is: <\/strong><\/span>New offsets for investing in early stage companies, including:<\/p>\n