Innovation and the Federal Budget of “restraint”

October 26, 2022 Kris Gale

Last night’s Federal Budget was characterised by the new Treasurer as one of “restraint”. And this appears to have applied to the R&D Tax Incentive – leaving the program untouched. 

Included in the Budget announcements were some news relevant to the innovation space:

•    The Government announced its flagship industry investment aimed at diversifying and transforming Australian industry through its $15 billion National Reconstruction Fund (NRF). The NRF proposes to deliver targeted co-investments over seven years from next July in independently assessed projects across the seven priority areas of 

o    resources
o    agriculture, forestry and fisheries
o    transport 
o    medical science
o    renewables and low emission technologies
o    defence capability and 
o    enabling capabilities.

The NRF will be funded in part by the “uncommitted funding” of the Entrepreneurs’ Program as well as from the former Modern Manufacturing Initiative and Manufacturing Modernisation Fund. This effective closure of the Entrepreneurs’ Program is unsurprising following the review by the Australian National Audit Office and Labor’s spending audit.

•    Additionally, some direct industry support to industry (mostly previously announced) was committed including a $50 million to upgrade the Nyrstar Hobart zinc smelter in Tasmania and $17.2 million to establish a pilot Food Manufacturing Innovation Hub in regional NSW

However, all in all, it was a quiet night for the innovation community. We will be closely monitoring to see if there is any further news over the coming weeks and we will share this with you in due course.

Should you wish to discuss this matter please do not hesitate to contact Kris Gale on 02 9810 7211 or email kris.gale@mjassociates.com.au