6  October, 2020

Federal Budget 2020-21: Statement from the Australian Investment Council

 

SYDNEY: Tonight’s Federal Budget highlights the important role that business investment will play in the decade-long journey towards repairing and rebuilding a stronger Australian economy, according to the Australian Investment Council’s Chief Executive, Yasser El-Ansary.

“With Australia now in the depths of an economic recession, expectations were high that tonight’s budget would deliver a well-structured series of policy initiatives aimed at creating new incentives for businesses to invest in the future – and for the most part, the budget has delivered on those expectations,” said Mr El-Ansary.

Comments on extension of tax incentives to invest and employ workers

The introduction of a major extension to the investment allowance to encourage more businesses to invest in new assets and equipment is an important policy initiative that will help to create new activity across every sector of the economy.

“The expanded incentive will encourage investment decisions to be brought-forward, which is precisely what the economy needs right now,” said Mr El-Ansary.

“The new cash incentive for businesses to hire unemployed workers aged between 16 and 35 will play an important role in helping to address the potential risks of structural unemployment for younger workers displaced as a result of the COVID-19 pandemic,” added Mr El-Ansary.

Comments on Research and Development Tax Incentive

“From the first impacts of the global pandemic earlier this year, the Australian Investment Council has led the call for changes to introduce a cap on refundable R&D credits to be abandoned, and it’s pleasing to see that the Government has accepted that advice and decided not to proceed with the previously announced reforms,” said Mr El-Ansary.

A strong, robust and competitive R&D program is an essential ingredient in ensuring that the Australian economy can continue to adapt to a more dynamic and innovative global marketplace, which is especially important now in the recovery phase after the COVID-19 pandemic.

“As Australia transitions out of the COVID-19 downturn we must ensure that the economic recovery is underwritten by big gains in innovation and technology to drive increased productivity in every sector of the economy. We have to do everything possible to boost our global competitiveness and attract new investment into our domestic market from offshore.”

Comments on new investment into Australia’s manufacturing capability

“The Council also supports government’s focus on advanced manufacturing in industries where we already are, or could be, world leaders and going narrow and deep in developing them further,” Mr El-Ansary, said.

“At this critical juncture in our national response to the COVID-19 pandemic, it is vitally important for our economic recovery and Australian jobs that our manufacturing capability can effectively and confidently grow and attract investment for the future. It is an important step towards supporting the rebuilding of business activity across the Australian economy and in sending a global message that Australia is open for business.

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For an interview with Yasser El-Ansary please contact:

Robyn Tolhurst
Public Affairs Manager
robyn.tolhurst@aic.co
M: 0436 388 919

About the Australian Investment Council

The Australian Investment Council is the voice of private capital in Australia. Private capital investment has played a central role in the growth and expansion of thousands of businesses, which when combined represents a multi-billion-dollar contribution to the Australian economy. Our members are the standard-bearers of professional investment and include: private equity, venture capital and private credit funds, alongside institutional investors such as superannuation and sovereign wealth funds, as well as leading financial, legal and operational advisers.

www.aic.co www.twitter.com/Ai_council