Federal Budget 2016-17: Business Grants & Incentives Update
Last night’s Federal budget was headlined by the reduction to the company tax rate, changes to small business entity turnover thresholds and additional tax discounts for small business. But the absence of any major announcements has left us wondering what initiatives await us on the campaign trail for July’s Federal election.
Many items are confirmation of previously heralded announcements:
- National Innovation and Science Agenda — boosting fund sizes from $100M to $200M for early stage venture capital limited partnerships.
- Allocation of $1B from the Clean Energy Finance Corporation to establish the Clean Energy Innovation Fund, to support commercialisation of emerging technologies.
- New Landing Pads in Berlin and Singapore, to add to the existing Landing Pads in San Francisco, Tel Aviv and Shanghai.
- $1.6B to support the Defence Industry continue to build capability, innovate and adopt new technologies.
Some new announcements:
- Industry Skills Fund halved to $247.2M over five years.
- Youth Employment Package to encourage entrepreneurship and self-employment.
- Trial of a paid three month internship program offering up to 30,000 places each year.
- Instant write off $20,000 capital investment extended to include new ‘small business’, with turnover threshold up to $10 million.
At this stage there has been no announcement regarding the current review of the R&D Tax Incentive program. So, we wait and continue to watch as the Federal election campaign unfolds to see if there are any of the expected announcements for innovation and business.
For more details of all the Budget announcements on grants and incentives for business please see our detailed extract.