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Federal Budget a ‘missed opportunity’ for startups

McCauley

StartupAUS, Australia’s peak advocacy group for startups, welcomed support for Fintech and expansion of the New Enterprise Investment Scheme (NEIS) in the Federal Government’s 2016 budget, but CEO of StartupAUS Alex McCauley believes that overall this budget was a disappointment for startups with few advances on previous measures. 

McCauley says this budget was a chance for the “Government to make good on its rhetoric about continuing to build momentum on innovation and Australia’s economic transition. But, from that perspective, it is a disappointment.”

“We welcome the limited support for Fintech in this budget, as well as the extension of the NEIS. Support for young people exploring entrepreneurship is important. But these are small, niche measures in an area that still requires bold, substantial action.”

McCauley says, “Almost all the measures relevant to startups that the Treasurer alluded to in his budget speech had already been announced, six months ago, as part of the National Innovation and Science Agenda. None of those measures have come into effect yet, although some have made encouraging progress recently.”

McCauley believes that the reality is that there is more “new money in this budget to help mining companies prospect for resources ($100m) than to help create a supportive environment for our best entrepreneurs to build a high-growth technology company in Australia.”

“It’s hard to see Australia as genuinely committed to transitioning to a ‘modern economy’ if its key spending priorities are shipbuilding, rail, and un-targeted business tax cuts. That won’t be lost on those watching our progress closely, both here and overseas,” says McCauley. 

“Since the announcement of the NISA six months ago, the government has been telling startups that the NISA was just the beginning. It has been describing the NISA as a platform from which it will be able to deliver bold, decisive action in this space. This budget was a missed opportunity to make good on that promise.”

“Startups didn’t expect any game-changing announcements in this budget. Implementing the NISA agenda items is still the top priority. But it’s critical that we don’t lose sight of the importance of genuine high-growth technology companies as a critical driver of Australia’s emerging economy.”

“We see the upcoming election campaign as a key opportunity for both the government and opposition to outline their vision for startups and innovation in this country. We can’t rest on our laurels here – our competitors are acting decisively. We can’t afford to be left behind.”


 About StartupAUS

StartupAUS is a not-for-profit entity with a mission to transform Australia through technology entrepreneurship. StartupAUS believes a strong home-grown tech sector is vital to future Australian jobs and wealth. But getting there will require a national imperative to create the right environment, with a supportive culture and more entrepreneurs with the right skills. 

StartupAUS will expand its efforts to bring financial partners on-board to help corporates have a bigger voice in the emerging innovation conversation and assist StartupAUS in increasing its resources and activities ahead of this year’s election, as both sides of politics vie for innovative traction. The organisation’s current corporate partners include Salesforce and Google Australia. It also has a growing list of philanthropic benefactors including successful tech entrepreneur, Steve Baxter, Co-Chairman of CHAMP’s Board of Directors and Investment Committee, Bill Ferris, and Director and Co-Founder of Allen & Buckeridge, Roger Allen.