Latest news with #BranBlack
The Advertiser
4 days ago
- Business
- The Advertiser
Aussies missing out on payoff from research investment
Australia is missing out on a $7 billion per year economic boon because it has failed to keep pace in the international research and development stakes, according to a new report. Tax cuts and red tape have dominated discussions ahead of Treasurer Jim Chalmers's economic roundtable. But getting investment flowing back into technological innovation is critical to fixing productivity growth, said the Business Council of Australia, along with home-grown tech companies Cochlear and Atlassian, as they released a report by consulting firm Mandala on Monday. Just by fixing research and development (R&D) policies and without increasing the burden on the budget, an extra 0.1 per cent could be added to productivity growth each year, they claimed. "Empowering businesses to make R&D investments is critical to making our economy more productive and innovative, and for delivering greater prosperity for all Australians," said the organisation's chief executive Bran Black. But Australia has slid down the international rankings in the past decade, with large businesses' R&D investment falling 24 per cent in that time. The nation's total R&D expenditure has fallen to 1.7 per cent of GDP, compared to the average of 2.6 per cent across peer economies. The report highlights six tweaks that could once again make Australia a world leader in innovation and deliver $5 of value for every $1 spent by the government. They include simplifying the tax incentive premium for R&D to a flat rate of 18.5 per cent, removing the existing tax incentive cap of $150 million, taxing profits from Australian innovations at a concessional 10 per cent rate, and incentivising collaboration between industry and research institutions. The report also called for streamlined reporting and compliance requirements to access the R&D tax incentive, and simplifying R&D grants for businesses by consolidating the various existing grants into fewer nationally significant programs. Cochlear chief executive Dig Howitt said clear, well-funded strategies would capture the full value of local innovation and attract high-value global companies. "Given that R&D and intellectual property are mobile, there are constant efforts by other nations to attract elements of Australian business's value chain - particularly our innovation, IP development and manufacturing - offshore," he said. Atlassian chief of staff Amy Glancey said Australia has always been ideas rich but has fallen short in commercialising innovations and selling them to the world. Australia is missing out on a $7 billion per year economic boon because it has failed to keep pace in the international research and development stakes, according to a new report. Tax cuts and red tape have dominated discussions ahead of Treasurer Jim Chalmers's economic roundtable. But getting investment flowing back into technological innovation is critical to fixing productivity growth, said the Business Council of Australia, along with home-grown tech companies Cochlear and Atlassian, as they released a report by consulting firm Mandala on Monday. Just by fixing research and development (R&D) policies and without increasing the burden on the budget, an extra 0.1 per cent could be added to productivity growth each year, they claimed. "Empowering businesses to make R&D investments is critical to making our economy more productive and innovative, and for delivering greater prosperity for all Australians," said the organisation's chief executive Bran Black. But Australia has slid down the international rankings in the past decade, with large businesses' R&D investment falling 24 per cent in that time. The nation's total R&D expenditure has fallen to 1.7 per cent of GDP, compared to the average of 2.6 per cent across peer economies. The report highlights six tweaks that could once again make Australia a world leader in innovation and deliver $5 of value for every $1 spent by the government. They include simplifying the tax incentive premium for R&D to a flat rate of 18.5 per cent, removing the existing tax incentive cap of $150 million, taxing profits from Australian innovations at a concessional 10 per cent rate, and incentivising collaboration between industry and research institutions. The report also called for streamlined reporting and compliance requirements to access the R&D tax incentive, and simplifying R&D grants for businesses by consolidating the various existing grants into fewer nationally significant programs. Cochlear chief executive Dig Howitt said clear, well-funded strategies would capture the full value of local innovation and attract high-value global companies. "Given that R&D and intellectual property are mobile, there are constant efforts by other nations to attract elements of Australian business's value chain - particularly our innovation, IP development and manufacturing - offshore," he said. Atlassian chief of staff Amy Glancey said Australia has always been ideas rich but has fallen short in commercialising innovations and selling them to the world. Australia is missing out on a $7 billion per year economic boon because it has failed to keep pace in the international research and development stakes, according to a new report. Tax cuts and red tape have dominated discussions ahead of Treasurer Jim Chalmers's economic roundtable. But getting investment flowing back into technological innovation is critical to fixing productivity growth, said the Business Council of Australia, along with home-grown tech companies Cochlear and Atlassian, as they released a report by consulting firm Mandala on Monday. Just by fixing research and development (R&D) policies and without increasing the burden on the budget, an extra 0.1 per cent could be added to productivity growth each year, they claimed. "Empowering businesses to make R&D investments is critical to making our economy more productive and innovative, and for delivering greater prosperity for all Australians," said the organisation's chief executive Bran Black. But Australia has slid down the international rankings in the past decade, with large businesses' R&D investment falling 24 per cent in that time. The nation's total R&D expenditure has fallen to 1.7 per cent of GDP, compared to the average of 2.6 per cent across peer economies. The report highlights six tweaks that could once again make Australia a world leader in innovation and deliver $5 of value for every $1 spent by the government. They include simplifying the tax incentive premium for R&D to a flat rate of 18.5 per cent, removing the existing tax incentive cap of $150 million, taxing profits from Australian innovations at a concessional 10 per cent rate, and incentivising collaboration between industry and research institutions. The report also called for streamlined reporting and compliance requirements to access the R&D tax incentive, and simplifying R&D grants for businesses by consolidating the various existing grants into fewer nationally significant programs. Cochlear chief executive Dig Howitt said clear, well-funded strategies would capture the full value of local innovation and attract high-value global companies. "Given that R&D and intellectual property are mobile, there are constant efforts by other nations to attract elements of Australian business's value chain - particularly our innovation, IP development and manufacturing - offshore," he said. Atlassian chief of staff Amy Glancey said Australia has always been ideas rich but has fallen short in commercialising innovations and selling them to the world. Australia is missing out on a $7 billion per year economic boon because it has failed to keep pace in the international research and development stakes, according to a new report. Tax cuts and red tape have dominated discussions ahead of Treasurer Jim Chalmers's economic roundtable. But getting investment flowing back into technological innovation is critical to fixing productivity growth, said the Business Council of Australia, along with home-grown tech companies Cochlear and Atlassian, as they released a report by consulting firm Mandala on Monday. Just by fixing research and development (R&D) policies and without increasing the burden on the budget, an extra 0.1 per cent could be added to productivity growth each year, they claimed. "Empowering businesses to make R&D investments is critical to making our economy more productive and innovative, and for delivering greater prosperity for all Australians," said the organisation's chief executive Bran Black. But Australia has slid down the international rankings in the past decade, with large businesses' R&D investment falling 24 per cent in that time. The nation's total R&D expenditure has fallen to 1.7 per cent of GDP, compared to the average of 2.6 per cent across peer economies. The report highlights six tweaks that could once again make Australia a world leader in innovation and deliver $5 of value for every $1 spent by the government. They include simplifying the tax incentive premium for R&D to a flat rate of 18.5 per cent, removing the existing tax incentive cap of $150 million, taxing profits from Australian innovations at a concessional 10 per cent rate, and incentivising collaboration between industry and research institutions. The report also called for streamlined reporting and compliance requirements to access the R&D tax incentive, and simplifying R&D grants for businesses by consolidating the various existing grants into fewer nationally significant programs. Cochlear chief executive Dig Howitt said clear, well-funded strategies would capture the full value of local innovation and attract high-value global companies. "Given that R&D and intellectual property are mobile, there are constant efforts by other nations to attract elements of Australian business's value chain - particularly our innovation, IP development and manufacturing - offshore," he said. Atlassian chief of staff Amy Glancey said Australia has always been ideas rich but has fallen short in commercialising innovations and selling them to the world.
Perth Now
4 days ago
- Business
- Perth Now
Aussies missing out on payoff from research investment
Australia is missing out on a $7 billion per year economic boon because it has failed to keep pace in the international research and development stakes, according to a new report. Tax cuts and red tape have dominated discussions ahead of Treasurer Jim Chalmers's economic roundtable. But getting investment flowing back into technological innovation is critical to fixing productivity growth, said the Business Council of Australia, along with home-grown tech companies Cochlear and Atlassian, as they released a report by consulting firm Mandala on Monday. Just by fixing research and development (R&D) policies and without increasing the burden on the budget, an extra 0.1 per cent could be added to productivity growth each year, they claimed. "Empowering businesses to make R&D investments is critical to making our economy more productive and innovative, and for delivering greater prosperity for all Australians," said the organisation's chief executive Bran Black. But Australia has slid down the international rankings in the past decade, with large businesses' R&D investment falling 24 per cent in that time. The nation's total R&D expenditure has fallen to 1.7 per cent of GDP, compared to the average of 2.6 per cent across peer economies. The report highlights six tweaks that could once again make Australia a world leader in innovation and deliver $5 of value for every $1 spent by the government. They include simplifying the tax incentive premium for R&D to a flat rate of 18.5 per cent, removing the existing tax incentive cap of $150 million, taxing profits from Australian innovations at a concessional 10 per cent rate, and incentivising collaboration between industry and research institutions. The report also called for streamlined reporting and compliance requirements to access the R&D tax incentive, and simplifying R&D grants for businesses by consolidating the various existing grants into fewer nationally significant programs. Cochlear chief executive Dig Howitt said clear, well-funded strategies would capture the full value of local innovation and attract high-value global companies. "Given that R&D and intellectual property are mobile, there are constant efforts by other nations to attract elements of Australian business's value chain - particularly our innovation, IP development and manufacturing - offshore," he said. Atlassian chief of staff Amy Glancey said Australia has always been ideas rich but has fallen short in commercialising innovations and selling them to the world.
West Australian
5 days ago
- Business
- West Australian
Private R&D investment by Australian businesses falling, report finds ahead of roundtable
Private investment into research and development in Australian businesses is slipping backwards and comparatively lower to similar other nations, a new report shows. The report — collated by the Business Council of Australia ahead of Treasurer Jim Chalmer's productivity roundtable next month — identified a raft of targeted policies to boost business potential. It proposes offering extra incentives for collaboration and commercialisation, cutting red tape, and consolidating grants into major national programs. The report estimates that for every $1 spent on R&D, it generates $5 in economic value and $7 billion in gross domestic product (GDP) annually. If the suite of measures are implemented, it's expected to grow productivity in Australia 0.1 per cent each year. It also recommends a simpler R&D Tax Incentive by standardising tax offsets of 18.5 per cent above the company rate and removing its current $150 million cap. It's hoped having a single, consistent rule rather than the current different benefit rates depending on company size or how much they spend, would encourage firms to invest in R&D, especially smaller players. As for scrapping the cap, the policy is designed to allow businesses to claim tax offsets for all of their eligible R&D spend rather than just the first $150 million under the current framework. BCA chief executive Bran Black said the targeted policies were designed to fix Australia's productivity problems by unlocking investment, boosting jobs and wages. He said reversing the current trend, which has seen R&D investment drop 24 per cent in the last decade, would help drive innovation and productivity nationally. He said it was important businesses were given the 'right environment' to invest: 'If we don't act now then we will keep losing innovators, capital and ideas to other nations'. 'Better tax, collaboration and commercialisation policies will give businesses the confidence to take the next step and create new Australian technologies that benefit everyone's lives,' he said. The report will form part of a joint industry submission with well-known Australian software firm Atlassian and medical device company Cochlear. Cochlear chief executive and president Dig Howitt said policy reform and 'well-funded strategies' would be critical to unlocking more R&D in Australia. Atlassian chief of staff Amy Glancey said by supporting major companies to invest in R&D it would have a trickle down effect to create a better environment for entrepreneurship and innovation. Dr Chalmer's roundtable will be held at Parliament House August 19–21 and is expected to shape a shared agenda on improving productivity, strengthening budget sustainability, and building economic resilience. It has prompted a number of state-level consultations and spin-off roundtables, including one held on Friday by Independent MP Allegra Spender involving economists and industry figures in Canberra. The BCA, along with other industry bodies, companies, and government representatives, are finalising submissions ahead of the August roundtable, outlining ideas across tax, regulation, innovation, skills, and digital transformation to help lift Australia's productivity.
West Australian
15-07-2025
- Business
- West Australian
CEOs urged to grow China trade, despite coercion threat
Australia's peak business lobby has played down concerns over Chinese economic coercion, saying increased trade between the two nations is actively encouraged. Business Council of Australia chief executive Bran Black said business leaders should continue to pursue diversification as an "inherent good in and of itself" while also strengthening ties with China. Australia's economic reliance on China was exposed during the COVID-19 pandemic, when Beijing imposed restrictions across $20 billion worth of key exports over political grievances with Canberra. At the time, Australia pursued a policy of trade diversification, successfully making up much of the trade shortfall with increased exports to countries such as Japan, South Korea and India. But since a thaw in relations with Zhongnanhai following Labor's election victory in 2022, trade between Australia and China has rebounded. Speaking ahead of Prime Minister Anthony Albanese's meeting with Chinese President Xi Jinping in Beijing, Mr Black said the meeting would set the tone at a business-to-business level and send a signal that further engagement is welcome. But Australian CEOs should still be encouraged to diversify because it was good for business as well as managing risk. "So from our perspective, we say let's try and have the best possible relationship that we can with China. Let's try and make sure that we can establish trade opportunities that help jobs and businesses back home," he told reporters in Beijing. "But let's also concentrate on the engagements that we have overseas with countries like the United Arab Emirates, countries like India, countries like those in Southeast Asia." A risk remains that China could once again resort to economic penalties on Australia in retaliation for political disagreements. Speculation has emerged that Beijing could apply countermeasures if Canberra follows through on its plan to tear up a Chinese-owned company's lease of Darwin Port. An article by a Chinese state media-linked influencer suggested Beijing could restrict Australian imports, including iron ore trade valued at more than $100 billion, in response. Mr Black refused to say whether businesses were concerned about blowback from the Darwin Port decision, backing the government's right to make decisions regarding the national interest. In a press conference on Monday, Mr Albanese said he was not concerned about Chinese retaliation. "We had a very clear position that we want the port to go into Australian ownership," he told reporters in Shanghai. "We've been clear about it, we've been orderly about it, and we will go through that process."
Perth Now
15-07-2025
- Business
- Perth Now
CEOs urged to grow China trade, despite coercion threat
Australia's peak business lobby has played down concerns over Chinese economic coercion, saying increased trade between the two nations is actively encouraged. Business Council of Australia chief executive Bran Black said business leaders should continue to pursue diversification as an "inherent good in and of itself" while also strengthening ties with China. Australia's economic reliance on China was exposed during the COVID-19 pandemic, when Beijing imposed restrictions across $20 billion worth of key exports over political grievances with Canberra. At the time, Australia pursued a policy of trade diversification, successfully making up much of the trade shortfall with increased exports to countries such as Japan, South Korea and India. But since a thaw in relations with Zhongnanhai following Labor's election victory in 2022, trade between Australia and China has rebounded. Speaking ahead of Prime Minister Anthony Albanese's meeting with Chinese President Xi Jinping in Beijing, Mr Black said the meeting would set the tone at a business-to-business level and send a signal that further engagement is welcome. But Australian CEOs should still be encouraged to diversify because it was good for business as well as managing risk. "So from our perspective, we say let's try and have the best possible relationship that we can with China. Let's try and make sure that we can establish trade opportunities that help jobs and businesses back home," he told reporters in Beijing. "But let's also concentrate on the engagements that we have overseas with countries like the United Arab Emirates, countries like India, countries like those in Southeast Asia." A risk remains that China could once again resort to economic penalties on Australia in retaliation for political disagreements. Speculation has emerged that Beijing could apply countermeasures if Canberra follows through on its plan to tear up a Chinese-owned company's lease of Darwin Port. An article by a Chinese state media-linked influencer suggested Beijing could restrict Australian imports, including iron ore trade valued at more than $100 billion, in response. Mr Black refused to say whether businesses were concerned about blowback from the Darwin Port decision, backing the government's right to make decisions regarding the national interest. In a press conference on Monday, Mr Albanese said he was not concerned about Chinese retaliation. "We had a very clear position that we want the port to go into Australian ownership," he told reporters in Shanghai. "We've been clear about it, we've been orderly about it, and we will go through that process."
