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Budget fails to ACT on venture capital.



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Media Release

BOB McMULLAN MP

SHADOW MINISTER FOR INDUSTRY AND TECHNOLOGY

MANAGER OF OPPOSITION BUSINESS

MEMBER FOR FRASER

IND17/99

12 May 1999

 

BUDGET FAILS TO ACT ON VENTURE CAPITAL

 

There is almost nothing in the Federal Budget to address the vital is sue of attracting venture capital for Australian industry, Shadow Minister for Industry and Technology, Bob McMullan said today.

 

“The Howard Government has done next to nothing in the Federal Budget to address the issue of attracting much needed venture capital to Australian industry,” Mr McMullan said.

 

Mr McMullan was speaking at the ACT and Region Chamber of Commerce and Industry 1999 Federal Budget Breakfast in Canberra this morning.

 

“Venture capital is one area where the Howard Government could have taken action to assist Australian industry and has dismally failed.

 

“The Howard Government should have taken the initiative to exempt from Capital Gains Tax US pension funds investment in Australian high-technology enterprises.

 

“Instead, the Government ignored the calls of the Australian venture Capital Association that Australia is missing out on billions of dollars of venture capital because of its current tax treatment.

 

“The Howard Government should, and could, have acted.

 

“Labor proposed such an exemption at the last election to allow for a much needed incentive for venture capital investment.

 

“Therefore, if the Government was prepared to act now, any reasonable proposition would have bi-partisan support and would pass quickly.

 

“This is not a matter which needs to wait for the Ralph Committee to report. Other business tax reforms can be pursued subsequently without cutting across this measure,” Mr McMullan said.

 

Further information: Tim Benson, 0413 525 748 or (02) 6277 4803

 

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