Analysis: Billion-dollar innovation scheme crafted in Turnbull's image
The $1 billion innovation statement is emblematic of how Prime Minister Malcolm Turnbull wants his Government to be defined.
It is meant to be read as embracing risk, future-focused, business-oriented, optimistic, and to use one Malcolm Turnbull's favourite words, "agile".
It is also meant to be a break with the austere Abbott era, but it does have a natty slogan "Welcome to the ideas boom".
It opens with the Prime Minister's favourite phrase: "There has never been a more exciting time to be Australian."
The package combines tax incentives, funding injections, fine words and rebadging and reallocating money.
The initiatives have been broken down into four headings: Culture and Capital; Collaboration: Talent and Skill; and using Government as an Exemplar.
Culture and Capital
The Government says about 4,500 start-ups miss out on equity finance each year. It will try and change that through tax breaks and incentives such as giving early stage investors a 20 per cent non-refundable tax offset based on the amount of their investment, as well as a capital gains tax exemption.
There will be a 10 per cent non-refundable tax offset for capital invested in early stage venture capital limited partnerships. The cap on committed capital will be lifted from $100 million to $200 million.
There will be a relaxation of the laws on claiming losses if a company changes business activities.
Deductions on some intangible assets (like patents) will be depreciated over a legislated timeframe, rather than over the economic life of the asset.
The bankruptcy laws will be reformed to encourage, reasonable, risk with the default bankruptcy period reduced from three years to one.
A "safe harbour" will be created for directors to limit personal liability for insolvent trading
There will be a ban on contractual clauses that allow an agreement to be terminated solely due to insolvency if a company is being restructured.
A new $200m CSIRO Innovation Fund will be established, as will a $250m Biomedical Translation Fund
This aims to get the best and brightest in business and research working together
There is now decade-long funding certainty for world class research infrastructure such as the Australian Synchrotron.
Research grant funding will be streamlined and refocused on collaboration.
The Research Connections program will be rebranded and relaunched as Innovation Connections.
Australia will increase its links with key economies to allow Australians to have "landing pads" in places like Silicon Valley and Tel Aviv, Israel.
There is also more funding for Australian collaborations with international research industry clusters, like those in Germany.
The Government will establish a Cyber Security Growth Centre, and invest $26m in quantum computing.
Talent and Skill
The Government says Australians have to have the skills to get high-wage, high productivity jobs.
To that end there is $51m for coding programs for years 5 to 7, skilling teachers and targeting STEM (science, technology, engineering and maths) programs.
There will be $13 million to support greater participation of girls and women in research and STEM industries.
There will be $48m invested in encouraging students to participate in science and maths.
A new Entrepreneurs Visa will be introduced, encouraging the world's talented to move to Australia.
Government as an Exemplar
The Government says it wants to change the way it does business by having a single body responsible for the long-term direction of its innovation plan, through a new statutory board badged as Innovation and Science Australia.
The $5 billion the Government spends each year on information and communications technology will be made more accessible for small and medium business by improving the Digital Transformation Office's services and setting up a Digital Marketplace.
The way Federal Government procurement works will be changed, with small and medium enterprises challenged to offer solutions rather than respond to tenders.
The Government will also introduce measures to make better use of the vast array of public data.
New investment comes after deep budget cuts
The tax changes will, no doubt, draw a lot of interest but the new investment is not quite what it might seem at first blush
On science and technology this package only just begins to undo the cuts inflicted by the Coalition's 2014-15 budget. Then the Government cut $147 billion from three agencies, with the CSIRO alone losing $111 million. That was on top of the 2 per cent efficiency dividend.
It led the Parliamentary Library to conclude that after the 2014-15 budget, Government funding for research and development matched historic lows when measured against 37 years of budgets.
Source ABC News