Commercial Ready program
The Government has decided to close the Commercial Ready program, a grants program for small to medium enterprises that subsidises innovation and its commercialisation. A 2007 report by the Productivity Commission is cited as supporting the Government’s decision.
The AusIndustry website states that:
- from 14 May 2008, the program (including Commercial Ready Plus) will be closed for applications
- the Government’s decision does not impact on those customers that have an existing funding agreement under the Commercial Ready program.
Pending the outcomes of the National Innovation System Review, innovation will continue to be supprted through the research and development tax concession program and a number of other new initiatives.
National Rental Affordability Scheme
The Federal Government reiterated its plans for a National Rental Affordability Scheme, at a cost of $622.6 million over the next four years. The objective is to create up to 50,000 new rental properties, and the scheme will have two key elements:
- an annual $6,000 Commonwealth tax credit, or grant, to construct new affordable rental properties and rent them at 80 per cent of prevailing market rents, and
- States and Territories will contribute $2,000 per credit, or grant, per annum, and may increase this contribution if they choose. State and Territory Government assistance could be provided through a direct payment, or in-kind through reduced stamp duty, infrastructure charges and fast-tracked development approvals.
To be eligible for a property delivered under the National Rental Affordability Scheme, tenants will need to be low or moderate income earners, earning below defined income limits.
Funding for ATO and ASIC
Additional funding of $256.9 million will be provided to the ATO over four years, commencing from the 2008-09 financial year, to allow the ATO to enhance its compliance activities, particularly for large business and high wealth individuals. The additional investment in ATO activities is expected to increase revenue by $1,980 million over four years.
In relation to the Choice of Superannuation Fund measures, the Federal Government is reducing the ATO’s funding in the 2008-09 year to $7.2 million, and terminating funding beyond 30 June 2009 for the ATO and the Superannuation Complaints Tribunal. Funding for the Australian Securities and Investments Commission (ASIC) will continue at a reduced level of $2.7 million per annum from 2010-11, to support the Commissioner of Taxation in superannuation related enforcement and compliance issues.
Assistance for small business
A Small Business Advisory Committee will be established this year to provide expert advice on the Federal Government’s new reform agenda on business regulation. The Committee will review and provide comment on regulatory proposals that have a significant impact on small business.
36 small business advisory centres will be established in suburban, rural and regional Australia at a cost of $42 million over four years. The $42 million small business program is part of the Federal Government’s overall small business strategy which includes cutting red tape in business regulation and providing tax relief for small business owners.
