Reading time: 3 minutes

Australia’s startup community welcomed the Federal Government’s recent announcement that it will spend up to $1.1 billion dollars over the next four years, promoting business-based research, development and innovation. Below, we provide a brief overview as to what the innovation boom package actually contains and what major initiatives they announced.

The Government’s Goals

A primary objective of the Federal Government’s innovation package is to help transition Australia away from economic dependence on the mining and resources boom. Prime Minister Malcolm Turnbull, launching the plan said, “our innovation is going to help create the modern, dynamic 21st-century economy Australia needs”.

He went on to differentiate the innovation boom from the mining boom, saying that it would be a boom that could continue forever, limited only by our imagination. With Australian tech-darling Atlassian’s recent valuation of US$5.85 billion, unquestionably Australians have the drive, the creativity and the self-belief to compete on the international stage.  

So, What Major Initiatives Did the Government Announce?

The innovation package aims to support startups and smart businesses, and to help them succeed by implementing the following major initiatives: 

  • Funding to help young students learn to code.
  • $75m for the CSIRO’s data research arm, Data 61.
  • $51m for to promote digital literacy.
  • $48m to develop a Science Technology Engineering and Mathematics literacy program.
  • $30m for a Cyber Security Growth Centre, creating business opportunities in cyber security.
  • $15m over four years towards a $200m CSIRO Innovation Fund.
  • $14m to encourage women and girls into the Science Technology Engineering and Mathematics (STEM) sector.
  • $10m over four years towards a $250m Biomedical Translation Fund, in partnership with the private sector.
  • Tax offsets and exemptions for investors. Early stage investors will receive a 20% non-refundable tax offset and a capital gains tax exemption.
  • A 10% tax offset for investors in new early-stage venture capital partnerships.
  • Relaxing insolvency laws for startups that fail, with the default period for bankruptcy reduced from three years to one year.
  • A $200 million innovation fund for commercialising and protecting information technology. This fund will co-invest in businesses that develop technology from the CSIRO and Australian universities.
  • $106 million in tax incentives for angel investors, who provide seed funding for new businesses.
  • For Australians wanting to take their ideas internationally, $22m to fund a project with Germany’s Fraunhofer Institute, and $36m to support the “Global Innovation Strategy”, helping startups start up in Silicon Valley, Tel Aviv and other locations.

Questions? Get in touch with LegalVision’s startup lawyers on 1300 544 755.

Webinars

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

Online
If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Online
Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

Online
If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Online
Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Online
Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards