Trump's war on innovation is a golden opportunity for Australia, if we're smart enough to take it
Jump-starting Australian innovation would give us a chance to break out of this uninspiring position and provide a path to a more prosperous future.
Frustratingly, we're on track to squander this opportunity. While competing destinations have launched ambitious programs like the Choose Europe for Science Initiative, backed by €500 million ($881 million), Australia has dragged its feet. A recent proposal to tax unrealised capital gains has spooked start-ups and their investors, and Labor's ongoing desire to cap foreign student numbers actively harms our chances.
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To reverse course and win the war for global talent, we require a bold, coordinated, 'big push' strategy to ensure that Australia offers the most compelling alternative to the US as a place to discover scientific breakthroughs, develop technologies and build companies.
Our big push strategy should target the four key types of individuals that define the best innovation ecosystems: world-class researchers; risk-taking entrepreneurs; high-skilled technical workers and promising young students.
We can target each talent category with two types of policy levers.
First, make it as easy as possible to choose Australia. For top talent and their families, getting an Australian visa should be a fast and seamless experience. Labor's National Innovation Visa is a good start but is too restrictive; it could be significantly expanded, for example by removing the 'invitation only' requirement and introducing a fast track for affected Harvard scholars. Supply-side housing action to address the ongoing crisis, such as zoning reform, is long overdue to make Australia welcoming to new migrants. Select new arrivals could merit limited financial support to smooth the transition, and for top professors who bring research affiliates in tow – think of the benefits we have seen from international researchers like Professor Michelle Simmons basing their careers in Australia – tailored incentive packages would provide excellent bang for the public buck.
Second, invest in the success of Australian-based innovators. For scientists, that means aggressively reversing the decline in R&D funding that Robyn Denholm, chair of the ongoing National R&D Review, has called a 'national emergency'. Opportunities to fund 'shovel-ready' research projects cut by the US are plentiful. For entrepreneurs and high-skilled workers, selective support for companies in high-potential or strategic sectors such as public offtake agreements, can support the growth of new products and businesses.
These policies can be targeted at places where Aussie innovators have already proved their strength. Hubs such as Melbourne's biotech district, Sydney's SaaS (Software as a Service) scene, or the Gold Coast's growing space industry provide natural focal points for new talent to coalesce and amplify.
Labor's historic election victory has given them a rare licence to invest in a better, more exciting future. For Albanese and Chalmers, who have publicly committed to solve our productivity crisis, this opportunity to boost innovation in Australia couldn't have come at a better time. They should seize the chance to do so.
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ABC News
24 minutes ago
- ABC News
Negative gearing reform is back on the agenda, but younger voters now hold the power
It's time to put the 2019 election to bed, along with the messages we pretend were sent from voters from that disastrous campaign for Labor. It has been six years since Labor leader Bill Shorten took what were quite radical proposals to the voting public, including negative gearing reforms. Since that election, Australia has changed profoundly. We have endured a global pandemic with consequences we are only beginning to realise, and an acute housing crisis that has changed us. We have seen the biggest change to the demographics of the dominant voting bloc, with millennials and Gen Z now being the largest voting group in Australia, outnumbering boomers. By the next election, that shift will be even more profound. Voters younger than their mid-40s are consistently telling pollsters they believe the system is stacked against them. They have made it crystal clear they are hungry for change. The treasurer's productivity roundtable has now morphed into something much broader than simply delivering productivity reforms, and this is both worrying and exciting some stakeholders. Some in business circles believe it is increasingly being used to push for higher taxes. Those who want the tax conversation say it's about more effective taxes. Even fairer taxes. Remember fairness? Senior government sources strongly contest that this is an excuse to raise taxes. They say they are keen to cut taxes too, but need to pay for it somehow. That can't be from spending cuts alone. A reconfiguration of that tax system is the only answer. The Australian Council of Trade Unions yesterday declared they will use the productivity platform to call for bold reform to negative gearing and the capital gains tax at the government's productivity roundtable this month, proposing that the tax breaks be limited to one investment property. Sally McManus, the union's secretary, told Insiders the current arrangements should continue for five years, but after that date, "we've got to bite the bullet". "Otherwise, we're just saying 'too bad, young people, you're not going to be able to ever own a home,'" she said. "Since 2019, the problem has just gotten worse. It's going to continue to get worse unless the government is brave enough to do something about it." When it was in opposition, Labor took negative gearing reforms to the 2016 and 2019 federal elections, at which they were defeated. But they were defeated for a myriad of reasons. Their tax policies were only part of the story of that defeat. The ACTU's manifesto for reform will be resisted by some quarters, but their proposals achieve one important thing. They have restarted a conversation that Australians have said they want their leaders to be having. The tax burden is not being shared fairly, and governments that continue to ignore this reality risk losing the trust of younger voters who are hungry for reform. At the same time, the Productivity Commission has called for a 20 per cent tax rate on profits for companies with revenue of up to $1 billion. The commission also called for a new 5 per cent tax on net cashflow rather than profits, which could see some large companies pay a higher rate but would provide immediate tax relief for smaller companies seeking to build their capital. Already, this is being fiercely resisted by the big end of town. But it's time to involve a wider range of Australians from across the tax scale to have an input on what is fair and what is just. Perhaps the proposal won't work — who knows — but we should ventilate big and radical ideas, and we should applaud the Productivity Commission for thinking radically and creatively. Returning to the negative gearing conversation, you'll recall this was a scare campaign Peter Dutton unsuccessfully tried to inject into the May campaign. At the time, it forced Prime Minister Anthony Albanese and Treasurer Jim Chalmers to deny that Labor was preparing to make changes to negative gearing. The issue re-emerged during the leaders' debate on the ABC, when Mr Albanese said he had not commissioned Treasury modelling on the potential economic impact of changes to the policy. His response prompted Opposition Leader Peter Dutton to laugh and accuse him of lying. Reports first emerged last year that the federal Treasury had investigated a potential overhaul of the tax concessions awarded to property owners. "It certainly wasn't commissioned by us to do so," the PM said when asked during the second debate about the Treasury modelling. But Treasurer Jim Chalmers had publicly stated back in September that he had asked Treasury for "advice" about the subject, leading Dutton to claim in the debate that Albanese had a "problem with the truth". Chalmers then tried to draw a difference between that advice and "modelling". "I've said on a number of occasions now that I sought a view," the treasurer said. "Now that's different to commissioning modelling. The prime minister was asked about commissioning modelling. I sought a view." Chalmers said it was "normal practice" to seek advice on such a matter and that the Treasury's view was a change to negative gearing "wouldn't get the sort of improvement that we desperately need to see in our economy when it comes to supply". One thing is clear: the treasurer wants this debate. Whether the PM would be willing to champion this change is another matter. We do, however, have one precedent worth remembering. The PM was deeply resistant to changing the stage 3 tax cuts until the case had been made with the public, and then suddenly, he was into it. I suspect the same thing would occur on some of the bigger reform ideas. Kos Samaras, director at the political consultancy firm Redbridge, said there are profound generational shifts between the 2019 and 2025 elections. In 2019, Millennials and Gen Z made up just 26 per cent of the electoral roll, whilst Baby Boomers and older Australians still held sway, culturally and politically. But that was the last election where the latter group's decades-long dominance would be felt. "By May 2025, Millennials and Gen Z accounted for 42 per cent of enrolled voters, a generational bloc shaped by vastly different life experiences," he tells this column. "This is the first cohort since the Great Depression to believe their quality of life is worse than that of their parents. "They've come of age amid a housing crisis, climate anxiety, a global pandemic, inflation shocks, and broken career promises. "At the next federal election, this generational tide will become even more pronounced. "Millennials and Gen Z will be the most dominant voting bloc in the country, while Baby Boomers and older Australians will comprise just 27 per cent of the roll. "Hence, the ACTU-proposed negative gearing changes will resonate with younger Australians, and it would be a brave politician to ignore such a proposal." Over to you. Patricia Karvelas is host of ABC News Afternoon Briefing at 4pm weekdays on ABC News Channel, co-host of the weekly Party Room podcast with Fran Kelly and host of politics and news podcast Politics Now.
West Australian
an hour ago
- West Australian
Inheritance tax wake-up call for all expat Brits in Australia still with private pensions in the UK!
A major tax change in the UK could have serious consequences for thousands of British expats living in Australia with pension savings left behind in the old country. From April 2026, pension pots inherited after the age of 75 will no longer be tax-free for beneficiaries. Instead, they'll be taxed as income, at the recipient's marginal rate — potentially as high as 45 per cent.. And from April 2027, the UK is going a step further — pensions will be brought into the scope of inheritance tax, too. This 2027 change is a fresh move from the UK Treasury. Pensions, which were previously exempt from UK estate taxes, will now potentially face double taxation — income tax plus inheritance tax. If you're an Australian tax resident with a UK pension and you're assuming it'll all pass seamlessly to your family one day, then think again. Historically, UK defined contribution pensions — also known as 'private pensions' — were a handy estate planning tool. If the pension holder died before age 75, the entire pot could pass to beneficiaries tax-free, and even after 75 it was only subject to income tax when withdrawn. More importantly, pensions were excluded from the estate for UK inheritance tax purposes, meaning they avoided the UK's hefty 40 per cent estate tax altogether. But from April 2026, that income tax exemption ends for people who die over age 75. And from April 2027, the pension itself will be counted as part of the estate for inheritance tax purposes. The UK government has confirmed that from April 2027, defined contribution pensions will be reportable for inheritance tax, with the responsibility falling on executors. In some cases, families could have just six months to report and pay tax or face late penalties. If that sounds like a nightmare for grieving families navigating two tax systems, it's because it probably will be. In contrast, Australian superannuation is relatively generous when it comes to estate planning because: Adding further complexity is a lesser-known change to how the UK defines inheritance tax exposure. From April 6 this year, the UK moved to a residence-based system. If you've been a UK tax resident for 10 out of the last 20 tax years, you may be classified as a long-term resident and subject to UK inheritance tax on your worldwide assets. So, even if you've been living in Australia for years, you may still be caught by UK inheritance tax, because the new rules apply a 'tail' period of up to 10 years after you leave. For many, transferring UK pensions to Australia via a Qualifying Recognised Overseas Pension Scheme has for a long time — and in the right circumstances — made financial sense. It consolidates retirement savings, aligns your money with your tax residency and gives you more control. Now, with the emergence of this new tax regime, the argument for a transfer grows stronger. It also removes the burden from your family of having to deal with HM Revenue and Customs, complex executor responsibilities and international tax reporting. Of course, it's not always straightforward because: But with professional advice, the process can often be navigated smoothly and the long-term benefits can be significant. The UK's planned tax changes are a wake-up call for British expats in Australia because: So, if you have UK pension savings and live in Australia, it's time to reassess your strategy. A well-considered pension transfer, in the right circumstances and with the right personalised advice, could mean more of your hard-earned savings stay in the hands of your family — and not in the UK tax office. Nicholas Hart is a financial adviser and UK Pensions expert at Empire Financial Group
The Advertiser
an hour ago
- The Advertiser
Electric expectations as mining conference goes nuclear
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As Australia grapples with the question of how to power its energy transition, it's worth listening to an international perspective, he says. "Look, we've seen a change going from diesel-powered submarines to nuclear-powered submarines," he told AAP. "We are non-political, all right. We are definitely non-political. We just thought, from the interest we've had from miners around the place asking the question about where we're going to get our power from, let's grab hold of these people and let them give their presentation." Paul Hemburrow, chief operating officer of the ASX's largest dedicated uranium miner, Paladin Energy, will try to drum up investor interest as he follows up the keynote with the first presentation of the forum. Even without the evaporated prospect of a domestic nuclear market, it's been a tricky time for the uranium sector. Prices have slumped in 2025 after the emergence of Chinese AI disruptor DeepSeek challenged assumptions that the technology would fuel a massive increase in energy demand globally. Uranium has rebounded slightly since but Paladin faced a further setback in late July when its Langer Heinrich mine in Namibia missed its output guidance. Traders dumped shares in the Perth-based miner, which is down nearly 21 per cent since the start of 2025. Paladin has taken the title of the most shorted stock on the ASX, while second-placed Boss Energy suffered an even more brutal 40 per cent sell-off after it warned traders it would miss its projected output at its Honeymoon uranium mine in South Australia. Boss Energy chief executive Duncan Craib will be second cab off the rank to deliver a presentation at Diggers. The previous prime target for short sellers - lithium miners - will be feeling slightly more bullish as they look to revive interest in the industry at the forum. There is increasing optimism that prices for the battery ingredient may have bottomed out following a dire three-year bear market, as China looks to stamp out oversupply. The Diggers and Dealers mining forum will take on a radioactive yellow hue as uranium miners take centre stage on opening day. While goldminers dominate the speaking program of the three-day mining industry networking fest, uranium will be the focus of the curtain-raiser keynote on Monday morning. For the first time in the conference's 34-year history, the keynote will take the form of a panel discussion. Canadian physician turned nuclear evangelist Chris Keefer has been flown into the Western Australian gold-mining town of Kalgoorlie, alongside Centre for Independent Studies energy analyst Aidan Morrison and the free market think tank's executive director Tom Switzer. The panel was scheduled before the coalition's catastrophic federal election meltdown in May, when their nuclear power ambitions went up in flames. But Diggers chairman Jim Walker says the setback doesn't dim the importance of the topic. As Australia grapples with the question of how to power its energy transition, it's worth listening to an international perspective, he says. "Look, we've seen a change going from diesel-powered submarines to nuclear-powered submarines," he told AAP. "We are non-political, all right. We are definitely non-political. We just thought, from the interest we've had from miners around the place asking the question about where we're going to get our power from, let's grab hold of these people and let them give their presentation." Paul Hemburrow, chief operating officer of the ASX's largest dedicated uranium miner, Paladin Energy, will try to drum up investor interest as he follows up the keynote with the first presentation of the forum. Even without the evaporated prospect of a domestic nuclear market, it's been a tricky time for the uranium sector. Prices have slumped in 2025 after the emergence of Chinese AI disruptor DeepSeek challenged assumptions that the technology would fuel a massive increase in energy demand globally. Uranium has rebounded slightly since but Paladin faced a further setback in late July when its Langer Heinrich mine in Namibia missed its output guidance. Traders dumped shares in the Perth-based miner, which is down nearly 21 per cent since the start of 2025. Paladin has taken the title of the most shorted stock on the ASX, while second-placed Boss Energy suffered an even more brutal 40 per cent sell-off after it warned traders it would miss its projected output at its Honeymoon uranium mine in South Australia. Boss Energy chief executive Duncan Craib will be second cab off the rank to deliver a presentation at Diggers. The previous prime target for short sellers - lithium miners - will be feeling slightly more bullish as they look to revive interest in the industry at the forum. There is increasing optimism that prices for the battery ingredient may have bottomed out following a dire three-year bear market, as China looks to stamp out oversupply. The Diggers and Dealers mining forum will take on a radioactive yellow hue as uranium miners take centre stage on opening day. While goldminers dominate the speaking program of the three-day mining industry networking fest, uranium will be the focus of the curtain-raiser keynote on Monday morning. For the first time in the conference's 34-year history, the keynote will take the form of a panel discussion. Canadian physician turned nuclear evangelist Chris Keefer has been flown into the Western Australian gold-mining town of Kalgoorlie, alongside Centre for Independent Studies energy analyst Aidan Morrison and the free market think tank's executive director Tom Switzer. The panel was scheduled before the coalition's catastrophic federal election meltdown in May, when their nuclear power ambitions went up in flames. But Diggers chairman Jim Walker says the setback doesn't dim the importance of the topic. As Australia grapples with the question of how to power its energy transition, it's worth listening to an international perspective, he says. "Look, we've seen a change going from diesel-powered submarines to nuclear-powered submarines," he told AAP. "We are non-political, all right. We are definitely non-political. We just thought, from the interest we've had from miners around the place asking the question about where we're going to get our power from, let's grab hold of these people and let them give their presentation." Paul Hemburrow, chief operating officer of the ASX's largest dedicated uranium miner, Paladin Energy, will try to drum up investor interest as he follows up the keynote with the first presentation of the forum. Even without the evaporated prospect of a domestic nuclear market, it's been a tricky time for the uranium sector. Prices have slumped in 2025 after the emergence of Chinese AI disruptor DeepSeek challenged assumptions that the technology would fuel a massive increase in energy demand globally. Uranium has rebounded slightly since but Paladin faced a further setback in late July when its Langer Heinrich mine in Namibia missed its output guidance. Traders dumped shares in the Perth-based miner, which is down nearly 21 per cent since the start of 2025. Paladin has taken the title of the most shorted stock on the ASX, while second-placed Boss Energy suffered an even more brutal 40 per cent sell-off after it warned traders it would miss its projected output at its Honeymoon uranium mine in South Australia. Boss Energy chief executive Duncan Craib will be second cab off the rank to deliver a presentation at Diggers. The previous prime target for short sellers - lithium miners - will be feeling slightly more bullish as they look to revive interest in the industry at the forum. There is increasing optimism that prices for the battery ingredient may have bottomed out following a dire three-year bear market, as China looks to stamp out oversupply. The Diggers and Dealers mining forum will take on a radioactive yellow hue as uranium miners take centre stage on opening day. While goldminers dominate the speaking program of the three-day mining industry networking fest, uranium will be the focus of the curtain-raiser keynote on Monday morning. For the first time in the conference's 34-year history, the keynote will take the form of a panel discussion. Canadian physician turned nuclear evangelist Chris Keefer has been flown into the Western Australian gold-mining town of Kalgoorlie, alongside Centre for Independent Studies energy analyst Aidan Morrison and the free market think tank's executive director Tom Switzer. The panel was scheduled before the coalition's catastrophic federal election meltdown in May, when their nuclear power ambitions went up in flames. But Diggers chairman Jim Walker says the setback doesn't dim the importance of the topic. As Australia grapples with the question of how to power its energy transition, it's worth listening to an international perspective, he says. "Look, we've seen a change going from diesel-powered submarines to nuclear-powered submarines," he told AAP. "We are non-political, all right. We are definitely non-political. We just thought, from the interest we've had from miners around the place asking the question about where we're going to get our power from, let's grab hold of these people and let them give their presentation." Paul Hemburrow, chief operating officer of the ASX's largest dedicated uranium miner, Paladin Energy, will try to drum up investor interest as he follows up the keynote with the first presentation of the forum. Even without the evaporated prospect of a domestic nuclear market, it's been a tricky time for the uranium sector. Prices have slumped in 2025 after the emergence of Chinese AI disruptor DeepSeek challenged assumptions that the technology would fuel a massive increase in energy demand globally. Uranium has rebounded slightly since but Paladin faced a further setback in late July when its Langer Heinrich mine in Namibia missed its output guidance. Traders dumped shares in the Perth-based miner, which is down nearly 21 per cent since the start of 2025. Paladin has taken the title of the most shorted stock on the ASX, while second-placed Boss Energy suffered an even more brutal 40 per cent sell-off after it warned traders it would miss its projected output at its Honeymoon uranium mine in South Australia. Boss Energy chief executive Duncan Craib will be second cab off the rank to deliver a presentation at Diggers. The previous prime target for short sellers - lithium miners - will be feeling slightly more bullish as they look to revive interest in the industry at the forum. There is increasing optimism that prices for the battery ingredient may have bottomed out following a dire three-year bear market, as China looks to stamp out oversupply.
