Australia may be approaching a new innovation boom with the unveiling of the Federal Government’s new A$1.1 billion package of measures intended to bolster entrepreneurship and new business investment in Australia.
"Unlike a mining boom, [the ‘ideas boom’] can continue forever; it's limited only by our imagination," Turnbull said.
The Prime Minister’s package announcement came on the heels of the explosion in technology listings on the ASX. Funds this year have more than doubled in contrast to 2014.
“We are becoming the Nasdaq of Asia. There is a transition taking place with funds flowing from mining into technology stocks in the small to mid-cap space,” informed ASX general manager, Max Cunningham.
As the country continues winding back from the mining hey-days the focus is turning to the innovation space. The Prime Minister believes a fundamental change in the culture of the nation is necessary in order to see the start-up sector flourish, and the first step is helping start-ups get off the ground by giving them more access to capital and support.
1. Capital gains decreases for start-ups.
2. Generous income tax rebates for retail investors.
3. Bankruptcy law amendments to foster more risk-taking by entrepreneurs.
Competition is much lower for start-ups here, than abroad in places such as the United States (US).
Venture capital is abundant for great businesses starting out here. Plenty of high-net worth Australian’s and family businesses have more capital available for new business ventures than they can currently put to use. Funds like Airtree, Trimantium and Blackbird are all said to be not completely deployed.
Labour is fairly cost-effective. Experts such as software engineers are more affordable to employ here than in entrepreneurial hubs such as those in the US and our rent’s are generally lower compared to US hot-spots.
Close to Asia. Australia’s proximity to Asia gives start-ups an advantage as a rising tide of Asian investors begin adopting technology in ever increasing numbers.
The weak dollar. Australian companies are now around 20 to 30% more competitive with the fall of the Australian dollar. A weaker dollar can aid start-ups in gaining foundation clients.