MYOB welcomes Government focus on innovation and investment
Leading accounting software provider MYOB has welcomed the Coalition Government’s focus on innovation with the announcement of new tax incentives and investment rules targeted at small business.
Finance Minister Grant Robertson and Minister for Small Business and Revenue Stuart Nash today announced new initiatives that would allow businesses to deduct feasibility expenditure on exploring the development of new products or business models, as well as changes to loss continuity rules to make it easier for start-ups to attract investment.
MYOB Country Manager Ingrid Cronin-Knight said the focus on R&D and attracting investment for start-ups and small businesses could be a game changer for the sector.
“There’s a lot of cost – and risk – in establishing a new business, and anything that can give local businesses the confidence to back themselves could make a major difference to the level of growth and innovation we see in the local economy,” she said.
“Currently, few local businesses are prepared to commit to additional R&D investment, so this kind of forward-thinking policy is exactly what the sector needs.”
According to the latest MYOB Business Monitor, just 10 per cent of SMEs intended to increase their R&D spending this year. Start-ups (under 2 years) and new businesses (2 – 5 years) showed a greater appetite for that investment, but still at low levels – just 14 and 13 per cent respectively.
“Our start-up community is the engine of innovation in our economy, however they need greater incentives in order to commit to funding new ideas and ventures – particularly at a very expensive stage of the business,” said Ms Cronin-Knight.
“The Government’s focus on removing the barriers to new investment – and in particular to make it easier to make those deductions when it counts the most – should be applauded, as it is likely to make a key difference at a crucial point in the life of a business.”
“These policies are not only likely to make it easier to attract investment into the sector but also enable businesses who want to invest in their own growth to do so without having to trade away equity.”