The AIIA has warmly welcomed Labor's proposal to reinstate the 150 per cent R&D tax concession and the pledge to allow a limited capital gains tax exemption for foreign fund investors. IT&T industry bodies have been lobbying hard for both initiatives over an extended period.
The AIIA says the move on venture funds, which would open the way for the giant US pension funds to invest in Australian SMEs, "is in the right direction because the vast bulk of venture capital in the world comes from those sources". However, executive director Peter Upton says the industry wants to see the rules under which the Australian venture capital funds would work and he's called for a period of consultation with industry.
"We think it's good that the package pro-poses to reinstate the 150 per cent R&D tax concession because there clearly is a problem in terms of encouraging R&D in Australia, and we have advocated that."