Tax changes to enable risk-taking flagged for innovation agenda

Changes to taxation and the treatment of bankruptcy are expected to be among areas targeted in the federal government’s innovation statement, to be released next month.

Yesterday Bill Ferris, a veteran venture capitalist and executive chair of CHAMP Private Equity, was appointed to head Innovation Australia for a three-year term. Ferris said more needed to increase Australia’s appetite for risk and to overcome an ingrained fear of failure.

Industry minister Chris Pyne said the innovation agenda, which Ferris was an adviser on and which will be released in December, would include measures to tackle these challenges.

Changes around tax, taxes bankruptcy, the way we treat tax losses et cetera – we want to create a ecosystem that really encourages the exact kind of behaviour that we are wanting to see in Australia, so, commercialising research, enabling risk,” Pyne told ABC’s PM yesterday.

The Australian Financial Review reports that the government has been urged to change the treatment of bankruptcy to include something like the USA’s Chapter 11 laws.