David Coleman (Banks, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Industry, Innovation and Science. I refer the minister to the GE global innovation barometer. How does this survey reflect the government's national innovation and science agenda and how is that agenda being embraced by business? Are there any threats to the progress the government is making in this part of the economy?

Christopher Pyne (Sturt, Liberal Party, Leader of the House) Share this | Link to this | Hansard source

I thank the member for Banks for his question. I know he is particularly interested in the innovation economy. I would also like to congratulate him on the excellent job he is doing as Chair of the Joint Standing Committee on Electoral Matters under trying conditions in the teeth of the Labor Party's opposition to more democracy in this country in the Senate.

Yesterday the 2016 GE global innovation barometer was released, and its findings reinforced the government's national innovation and science agenda. Seventy-two per cent of Australians are optimistic about innovation. Eighty-seven per cent of Australian business executives say the start-up ethos is the paradigm that we need to follow and 94 per cent support making Australia a leading country for innovation. It points to a change in culture, which is the first pillar of the national innovation and science agenda. It shows that our business community is moving to a position where they understand that our economy is transitioning towards an innovative, creative economy and away from the construction phase of the mining boom—and that is a good thing.

This culture is being manifested in some real Australian success stories. We saw this year Atlassian list on the Nasdaq and raise $8 billion, the largest capital-raising of any Australian business, and it was founded by Scott Farquar and Mike Cannon-Brookes. We have also seen it in the business of citizen reporters and photographers, in a business founded by Alex Hartman, who would be well known to many members of the House, called Newzulu, an ASX listed company that has deals with AP, AAP, ABC, Channel 7 and Fairfax, with six offices in six different cities around the world. It was a start-up business only a couple of years ago.

By contrast, the Labor Party wants to snuff out this new investment, this new support for start-up industries. On this side of the House we have a capital gains tax exemption for investments by angel investors in start-up innovative businesses that will help grow the start-up economy, a capital gains tax exemption for assets held from three to 10 years. Labor on the other hand wants to halve the capital gains tax discount for Australian investors. They want to increase the capital gains tax at the very time when this government is trying to help the economy transition to a new economy by removing some of the hurdles that stand in the path of investment in capital gains tax. The other side of the House, if they were elected, would put up those hurdles and increase those hurdles on investment through capital gains tax. They are a risk to the economy. (Time expired)