NEW SOUTH WALES could significantly increase technological innovation and new product development by creating beta-testing sites for university researchers.

that is the view of Stoic Venture Capital partner Geoff Waring, who said "technology innovation lifts employment while improving competitiveness of local companies at a global level".

“Creating a policy for beta-testing sites in NSW for university researchers would attract researchers, entrepreneurs, start-up companies, venture capital and multinationals to NSW,” Dr Waring said.

“It could also help to develop links between university research and industry as well as lead to the creation of new technology start-ups from the intellectual property developed at local universities.”

Dr Waring said NSW’s current procurement innovation stream for small and medium sized companies whereby contracts of up to $1 million may be awarded following successful proof of concept trial, does not currently meet the needs of university researchers who are at a very early level of development.

Many of NSW’s most difficult problems are beyond the technology capability of existing suppliers, so need unproven technology development, he said.

“These difficult problems include ecological conservation, the effects of climate change and pandemics. University researchers have a parallel problem proving their technology that works in the lab also works and is safe in use. Venture capital investors want to see a proof of concept before they invest. All these parties gain from a small-scale beta test."

If the NSW Government shared more information with university researchers about the priority problems they faced and had a process to evaluate emerging technologies, the universities could bring to the government potential technologies that could be trialled on a small scale in NSW locations, he said.

Small pilot trials could be undertaken in a managed environment to minimise risk.

“There would need to be requirements around safety, data privacy and a minimum level of technology readiness according to the standardised benchmarks,” Dr Waring said. “Coming from a university would also give the science a high degree of legitimacy.”

This has similarities to the Federal Business Research and Innovation Initiative and Melbourne 5G IoT testbed and prototype street programs, Dr Waring said.

"This is an innovative approach that could assist researchers and investors to overcome information gaps that act as a barrier to financing while exploring solutions to city problems that are too difficult for existing providers.”

About Stoic Venture Capital

Stoic Venture Capital provides financing for early-stage companies, particularly those arising from university research. Stoic is unconditionally registered as an Early Stage Venture Capital Limited Partnership (ESVCLP) and takes a collaborative approach to investing in the highest potential companies. Atlas Advisors Australia AFOF is the major limited partner for the Fund. www.stoicvc.com.au

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ELIGIBLE employers are now able to register for the new JobMaker Hiring Credit scheme, being administered by the Austrlaian Taxation Office (ATO) on behalf of the Federal Government.

The JobMaker Hiring Credit payment is a wage subsidy paid directly to employers that aims to help accelerate growth in the employment of young people during the COVID-19 economic recovery. The scheme is an incentive for businesses to employ additional job seekers aged 16 to 35 years.

Eligible employers can access the payment for up to 12 months for each eligible additional employee they hire between October 7, 2020 and October 6, 2021. They will be able to claim up to $200 a week for each additional eligible employee they hire aged 16 to 29 years, and up to $100 a week for those aged 30 to 35 years.  

This means an employer will be eligible for up to a total of $10,400 over the year for each eligible employee aged 16 to 29 years or $5,200 if aged 30 to 35 years.

Deputy Commissioner James O’Halloran said the ATO was working hard to make it as easy as possible for employers to access the government’s JobMaker Hiring Credit payment.

“The ATO is here to support employers and the community to easily access important economic stimulus like the JobMaker Hiring Credit,” Mr O’Halloran said.

Mr O’Halloran encouraged businesses to check their eligibility and take this first step to register for the scheme from this week and then employers would be ready to move to quickly make a claim in February 2021.

"You cannot claim if you are not registered," he said.

“We encourage employers to register from now to ensure their hiring credits can be paid promptly from when the first quarterly claim period opens in February 2021,” Mr O’Halloran said.

“Employers are reminded that new employees must have received the Parenting Payment, Youth Allowance (Other) or JobSeeker Payment for at least 28 consecutive days (or two fortnights) within the 84 days (or six fortnights) of being hired to allow for a claim to be made by the employer.

“There are some key dates to keep in mind, and simple steps employers can take now, but please remember that not everything needs to be done from next week.”

• Employers and employees must meet eligibility requirements to receive the payment.
• Employees must be aged 16 to 35 years. 
• Employees must have started employment between 7 October 2020 and 6 October 2021 (inclusive) and 
• Employees need to have completed a minimum average of 20 hours (worked or paid) per week during the time they were employed in the JobMaker period.

“I encourage employers seeking advice on the JobMaker Hiring Credit to contact their tax or BAS agent, or call us on our dedicated help line 13 28 66,” Mr O'Halloran said.

ATO's key dates to remember:

• The JobMaker Hiring Credit scheme started on 7 October 2020.
• You may be able to claim for employees hired between 7 October 2020 and 6 October 2021.
• You can register from 7 December 2020 through ATO online services, the Business Portal or your registered tax or BAS agent. 
• Claims for the first quarterly payment will open on 1 February 2021.
• The last day you are able to claim for employees is 6 October 2021.
• If you hire an employee on 6 October 2021, you are able to claim for payment to 6 October 2022.
• The JobMaker Hiring Credit scheme will end on 6 October 2022.

More information on the JobMaker Hiring Credit scheme is available from our website at https://www.ato.gov.au/General/JobMaker-Hiring-Credit/

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CBUS SUPER, the Australian building and construction industry super fund, has announced new investments in innovation and solar technology.

A Cbus spokesperson said Cbus "demonstrates its commitment to the building and construction sector by partnering with Brookfield as a cornerstone investor in built environment innovation, alongside a commitment to sustainability with a global investment in Capital Dynamics’ solar projects".

Through its Brookfield partnership, Cbus will invest in technology-enabled, growth-oriented businesses with a strong connection to the built environment, leveraging Brookfield’s significant industry insight and operating capabilities.

The strategy will seek proven business models to invest in, targeting assets with robust revenue growth, strong management teams and limited technology risk. The commitment will capitalise on key built environment themes that have been accelerated by the pandemic, including the need for increased digital connectivity, health and liveability and sustainability.

Cbus chief investment officer, Kristian Fok said, “The market for emerging technology servicing the built environment is growing rapidly and will accelerate post-COVID, primarily across real estate and construction, transport and logistics, and healthcare.

“The disruption caused by COVID-19 has rapidly changed the way businesses operate, with increased reliance on technology and innovative business models as more people work from home. The Brookfield growth technology initiative will invest in the digital transformation of the built environment – linking technology, innovation and disruption.

“The strategy also supports the broader building and construction industry. The significant investment has a number of benefits, including the opportunity to leverage built environment innovation into Cbus’ assets.”

CAPITAL DYNAMICS

Capital Dynamics, together with Cbus Super and other co-investors, has completed the acquisition of a direct interest in two solar photovoltaic projects from LS Power.

Capital Dynamics’ Clean Energy Infrastructure is one of the largest renewable energy investment managers globally. The portfolio includes a 100 percent interest in Centinela Solar Energy (252 MWdc) located in Imperial County, California and a 30 percent interest in Arlington Valley Solar Energy II (175 MWdc) located in Maricopa County, Arizona.

Kristian Fok said, “This is a significant investment for Cbus, providing our members with strong risk-adjusted returns, underpinned by long-term Power Purchase Agreements with an investment grade counterparty. There is also the opportunity to optimise the assets alongside the deep experience of the Capital Dynamics management team.

“The investment aligns with our commitment to sustainability and reducing emissions, while building on our direct investment strategy to deliver stronger returns for our members.”

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has called for an industry-specific R&D Tax Incentive, saying the current system is hampering investment and growth in the sector.

In a submission to the Federal Government’s Financial Technology Inquiry, the Ombudsman described the R&D Tax Incentive as unsuitable for software development in its current form.

“The R&D Tax Incentive eligibility requirements need to be changed so that it is clear and simple to claim tax incentives under the existing scheme,” Ms Carnell said.

“Alternatively a dedicated software development incentive should be created to promote investment and growth in the sector.

“With 80 percent* of all R&DTI claims made by Australian SMEs, it is clear that many small and family businesses rely on the R&DTI to help fund their research and development.

“About half (48%) of all R&DTI claims come from the software development industry, so a transparent and predictable system is absolutely vital to those businesses.”

The Ombudsman’s recommendations to the government have been echoed by industry peak bodies and private tech sector heavyweights, including Atlassian.

“We welcome submissions supporting my office’s long-held position on this issue, including Atlassian’s reported ‘strong endorsement’ of an interim recommendation to clarify the existing scheme and put a time-limit on any potential clawback action," Ms Carnell said.

“At the end of the day we want small businesses to grow into big businesses such as Atlassian and a fit-for-purpose R&DTI scheme is a key support mechanism.

“Our R&DTI report, released in December 2019, found many small and family businesses were subjected to examination and audit several years after the R&D was undertaken and the R&DTI refund had been spent.

“Often these affected businesses were required by the ATO to repay the R&DTI in full, with a severe penalty applied.

“This has had a devastating impact on the businesses involved, with some discontinuing or scaling down their R&D efforts in Australia and reducing their R&D staff," she said.

“Ultimately for SMEs to continue to invest in innovation and growth, it is critical they are supported in their R&D endeavours.”

www.asbfeo.gov.au

• Department of Industry, Innovation and Science, Annual Report 2017-18.

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