Manufacturing News

Employee share reforms, innovation funding for small business expected

The federal government’s industry competitiveness statement
is expected this Wednesday, with measures to encourage investment in start-ups
and areas where Australia has an identified comparative advantage.

The Australian reports that the first major economic policy
announcement since the May budget is “strongly influenced” by the Business
Council of Australia’s recommendations on existing areas of national strength,
including advanced manufacturing, medical technologies, mining technology, oil
and gas, agribusiness and energy.

There are predicted changes to employee share scheme rules brought in under the former Labor government in 2009, taxing employees who are issued options on the
expected ultimate value of shares.

Under the changes, those with options will only be taxed
once they have been converted to shares. This will apply to all companies.

Reform to current employee share rules has been requested by
groups including AusBiotech.

There are also expected to be subsidies for small businesses
to commercialise innovations and to test new concepts, reports The Australian.

The National Industry Investment and Competitiveness Agenda’s release has been
delayed due to reasons including national security issues.

taskforce, chaired by prime minister Tony Abbott, to develop the agenda was announced in December after Holden announced it would end its manufacturing
operations in Australia in 2017.


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