As I'm sure you know, the 2014-15 Federal Budget was handed down earlier tonight by the Treasurer, the Hon Joe Hockey MP.
This budget was always going to be about cutting expenditure and re-calibrating the Government’s policy priorities – And that’s exactly what we saw in tonight’s announcements.
This is the first budget handed down by the new Coalition Government, and it has been helped by the work done recently by the National Commission of Audit, which made a number of recommendations about cuts to government expenditure.
Several programmes that are vitally important to fostering greater innovation investment within our economy, such as the Innovation Investment Fund, Commercialisation Australia as well as the R&D Tax Incentive, have all been impacted by announcements in tonight’s Budget.
There is potentially some good news though, with announcements about new programmes such as the Entrepreneurs’ Infrastructure Fund and the Medical Research Future Fund, but we will need to see more detail in the coming days.
AVCAL will continue to engage with the Government to understand the full impact of decisions taken in this Budget, as part of our agenda to build a more innovative and internationally competitive Australian economy for the future.
It’s worth mentioning also that the Government is part way through a review into a new National Industry Investment and Competiveness Agenda, which is due to report back later this year. That process provides us with a good opportunity to help shape future government policy in our industry.
A more detailed analysis of the key budget announcements relevant to private equity and venture capital is available on the AVCAL website.
I will be providing a post-budget policy update to leaders from the growth fund segment at an exclusive Growth Funds dinner on Thursday evening in Sydney.
If you have any questions, please don't hesitate to contact me.