Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how the government is supporting investment, economic growth and jobs in our transitioning economy by encouraging innovation, investment and enterprise in Australia? How is the government's innovation agenda helping to create a more modern, dynamic, 21st-century economy and jobs for more Australians?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Lindsay for her question because she sees, out there in her electorate in Western Sydney, the transitioning economy taking place every day. She can see the businesses in her own electorate and Australians out there working hard and making the transition happen. Today in this House, the government introduced new legislation that is going to encourage innovation, encourage the risk takers—as The Financial Review was encouraging risk takers—to become the growth makers and support entrepreneurial culture in Australia. That is at the heart of the NISA, which has been outlined by the Minister for Industry, Innovation and Science.

As part of that $1.1 billion incentivising package, the bill that we introduced today will provide concessional tax treatment to investment in innovative high-growth start-ups, as the Prime Minister has just mentioned. It reforms arrangements for venture-capital limited partnerships to improve access to capital and make the regime more user-friendly and more internationally competitive. Some 4½ thousand start-ups miss out on equity finance each year. The economy and the tax system need to encourage and support the innovators to create the new ideas and turn them into commercialised products.

What this government is doing through changes to the tax system is backing Australians whom we know will innovate and create growth, and therefore jobs, whether it is in the member for Lindsay's electorate or in electorates represented right across this chamber. The changes we are putting in place will reduce the tax burden on investment. The plan on this side of the House is to reduce the tax burden on investment, because we understand that, if you want to encourage investment, which is one of the key challenges in our transitioning economy, then you have to reduce the burden on that investment when it comes to taxation. There is a 20 per cent non-refundable tax offset for investments of up to $1 million in early-stage innovation companies.

Here is one that they should pay close attention to: a 10-year exemption on capital gains tax, provided investments are held for 12 months. On this side of the House, we think it is a good idea to reduce capital gains tax to support investment. On that side of the House, they think they should increase capital gains tax on property investments, commercial property investments and share investments—all of these things—through their ill-thought-through policy. That is what they think. On this side of the House, we believe it is important to have a tax system that encourages investment, because that is the key ingredient to support the transitioning of our economy. Those opposite cannot seem to grasp this point about reducing the tax burden on investment, and that is why those on that side of the House cannot be trusted to manage the transition that is taking place in our economy.

Ms Butler interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Griffith is warned!