Federal Treasurer Wayne Swan has come under fire for not providing investors with any sort of budget incentive to put their money into promising start-ups.
While small businesses were left disappointed by Swan’s decision to dump the much-hyped 1% company tax cut, supporters of Australian innovation were also left frustrated.
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The Australian Women Chamber of Commerce and Industry says it is “very disappointed” that no tax incentive was handed to investors to encourage them to support new ventures.
Yolanda Vega, CEO of AWCCI, says: “There are no tax incentives to encourage angel investors and venture capitalist to assist with the growth of start-ups and business expansion.”
“Without new firms driving employment growth, we cannot survive as a nation in a growing competitive global market, especially considering that the 4% of surviving start-ups produce 50% of new jobs within 10 years.”
Vega pointed to recent AWCCI research that found that less than 1% of female entrepreneurs received money from a venture capitalist or angel to get their business up and running.
“We know women business owners want to grow,” she says.
“88% of respondents said they want to expand their business in a variety of different markets, both national and international, but the majority need access to capital.”
“It is now time for the Federal Government to look at long term profits for the benefit of the nation.
“Short-term band aid solutions will not allow our nation to retain the title of ‘the lucky country’ for future generations if we don’t establish policies and programs for the long term.”