New Prime Minister can boost business confidence from today

New Prime Minister can boost business confidence from today

The Australian Private Equity & Venture Capital Association Limited (AVCAL) today congratulates Malcolm Turnbull on his election to the role of Prime Minister last night.

“The new Turnbull Government has a very clear opportunity now to foster a more innovative, dynamic and entrepreneurial Australian economy which builds on the solid foundations put in place by the previous Government,” said AVCAL’s Chief Executive, Yasser El-Ansary.

“In the coming months, Australian businesses will want to see from the new Prime Minister a comprehensive plan which sets out how we will transition towards a more productive and competitive economy over the coming decade, and how government policy will support that change,” he added.

Some of the features of that long-term economic transformation plan for the new Turnbull Government should include:

• Tax Reform White Paper – Work should continue in this important area of policy over the next 12 months, because a more competitive tax system is an essential ingredient in attracting capital from domestic and offshore sources to drive new business investment and employment growth.

• Financial System Inquiry – The Government’s response to the recommendations made in the 2014 FSI Final Report should be progressed in the months ahead. Improving the policy and regulatory framework in respect of the role of superannuation within our economy must feature prominently in the Government’s response.

• Private capital – Improving access to private capital for startups and established Australian businesses looking to expand in domestic and offshore markets should be prioritised. Two key features of this include:introducing a world-class Collective Investment Vehicle regime that allows fund managers to more effectively raise new capital to invest into Australian businesses, and implementing changes recommended by the 2011 Board of Taxation review, which the Labor Government agreed to at the time, and which were abandoned by the Abbott Government in 2013.

• Enhance the research and development tax rules – The R&D tax system plays an integral role in nurturing the growth of startups Australian businesses, and therefore enhancing the R&D program would provide valuable support to innovative businesses who invest in the development of new products and services for our future. The Turnbull Government should retain and enhance the R&D program by introducing quarterly credits for eligible businesses.

“For many years now, Australian businesses have proven that they can compete with the world’s best, and win new markets in a variety of industry sectors. The one thing that we must do over the coming months is lay down a long-term vision for our economy which clearly sets out the agenda for reform – if we do that, business sentiment will improve.”

“Offshore investors want to be confident that when they put their money to work here in Australia, the long-term policy and regulatory framework delivers certainty and predictability,” said Mr El-Ansary.

AVCAL commends previous Prime Minister Tony Abbott for his significant efforts over the past two years since forming Government.

ENDS

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