Shadow Treasurer Chris Bowen has pledged that a Labor government will prioritise tax relief for Australian businesses and invest in digital skills as part of reforms to lift the country’s productivity levels.
According to Bowen, [a] future Labor government will ‘invest’ in a 20% upfront depreciation guarantee that would apply to businesses that invest in not only traditional physical assets but also new intangible knowledge-based assets.
‘We will provide tax relief to businesses on the condition of investment. Companies making new investments will be able to immediately deduct 20 percent of the cost in the first year, over and above the existing depreciation schedule’.
‘The 20 percent deduction will not just apply to traditional investments like machinery and equipment, but also to the depreciation of increasingly important intangible investments including patents, intellectual property, upgrading computer software – all supported under investment guarantee’.
Comment: Large companies will capitalise their software development while startups will gain nothing because they don’t make a profit! The world’s largest startup, Amazon, reinvests NEARLY ALL of it’s profits.
In May 2015, Bowen flanked by Husic … reminded an audience that at the same time the previous year:
Picture: News Corp
‘every politician and their cavoodle were singing the praises of an agile, innovative economy’