INCREASING foreign investment in venture capital, particularly at the early and seed stages, could give industry and innovation the critical boost it needs, generating greater economic benefits to Australia including higher employment and more patents, leading fund manager, Atlas Advisors Australia, said.

Executive chairman of the top Significant Investor Visa fund manager, Atlas Advisors Australia, Guy Hedley called on the Australian Government to give priority to venture capital under the SIV program.

Mr Hedley’s comments form part of Atlas Advisors Australia’s recent submission in support of the Australian Government’s review of the Business Innovation and Investment Program.

He said while there had been significant growth in venture capital investment to $1 billion in annual commitments, investment in early stage venture capital and seed funding declined by as much as 46 percent in the past four years.

“It is estimated that investment in early stages has been about $75 million spread across 138 deals in fiscal 2019. This is down significantly from $180 million across 270 deals in 2016,” Mr Hedley said.

“This could be significantly increased by boosting the asset allocation towards early stage investments under the SIV’s complying investment framework,” he said.

Australia reported very low venture capital per capita of between $15 and $30, amounting to less than half the OECD average, four times lower than Sweden at $122, United Kingdom at $114, France and Germany at $60.

According to AusIndustry data, 40 percent of the 84 registered venture capital funds didn’t make a single investment in fiscal 2019 and only 14 percent made 10 or more investments.

It was important to consider that the economic benefits, including employment and patents, were driven much higher by allocating to venture capital than to secondary public market equities, Mr Hedley said. 

The venture capital or private equity fund component of the complying investment framework should be skewed more to Early Stage Venture Capital Limited Partnership (ESVCLP) funds and less towards lower risk Venture Capital Limited Partnership (VCLP) investments.

“Even with a strong proportion of new SIV approvals, we are unable to meet the growing demand for seed and early stage venture capital,” Mr Hedley said.

“Where an investor elects to allocate 50 percent of the investment framework into venture capital and growth private equity funds, there should be a reduced visa period of three years or a prioritization of the application for processing.”

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THE Queensland Government’s North Queensland Regional Plan has reinforced a strong future for the resources sector.

Queensland Resources Council (QRC) chief executive Ian Macfarlane said the Plan, released by State Development, Manufacturing, Infrastructure and Planning Minister Cameron Dick last week, specifically focussed on the future opportunities for the mining industry.

Mr Macfarlane said it was important that policies were put in place to back in the potential outlined in the plan, in particular a commitment to clear assessment processes and timelines.

“This report points to the great prospectivity of North Queensland in our powerhouse commodities of coal and natural gas, as well as other valuable commodities such as gold and metallic ore,” Mr Macfarlane said.

“QRC believes it is essential that the State Government has a plan to develop these commodities, and capitalise on the rich prospects in critical minerals that drive our modern economies.

“To make the most of these opportunities Queensland must have a clear framework and timelines for project assessments.

“If we want to attract the investment in new projects that create new regional jobs, we must ensure that global investors have faith in Queensland’s laws and regulations to allow ongoing resources development alongside environmental and regional benefits.”

Mr Macfarlane said the QRC has worked with the government to promote new discoveries and protect existing jobs within the industry and for those Queenslanders, local businesses and communities indirectly benefiting from a strong resources sector.

“I want to thank Minister Dick and his department for their consultative approach on the development of the landmark North Queensland Regional Plan.  The Plan balances the current challenges of the industry and the future opportunities for it and the people of North Queensland,” he said.

Mr Macfarlane said QRC welcomed the Plan’s focus on three areas of opportunity for the resources sector. These are:

1. supporting the identification and extraction of precious metals and rare earth elements. There is expected to be an increase in demand, due to their increasing use in emerging technologies (such as electric cars, renewable energy products and low-emission power sources);
2. expanding the region’s support capacity (supply chain, logistics and other allied services) for the North West mineral province, Bowen Basin and Northern Galilee Basin;
3. investigating and promoting new technologies to improve the sustainability and capabilities of mining and resource extraction. Technological advancement will also help improve the viability of extracting existing mineral deposits in the region. 

Mr Macfarlane said these opportunities, along with regulatory stability, streamlined assessment processes and land access, would underpin the sector’s continued growth and will deliver more jobs and more investment for North Queensland.

“The Queensland resources sector is essential to the wellbeing of the Queensland economy.  We want to see all sides of politics commit to polices that support new investment and new jobs,” Mr Macfarlane said.

“QRC commits to working with all sides of the Queensland Parliament on policies that maximise regional and state-wide returns from investment in the North.”

www.qrc.org.au

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THE Parliamentary Standing Committee on Public Works held a public hearing as part of its scrutiny of the proposal from the Australian Taxation Office (ATO) to conduct integrated fit-out works for new leased premises at 152 Wharf Street, Brisbane, QLD.

The proposed works are due for completion in August 2022. The total estimated cost of the project is $49.59 million, excluding GST.

The Committee conducted public and in-camera hearings for the inquiry at Parliament House, Canberra on 26 February 2020.

Interested members of the public are encouraged to contact the Committee Secretariat.

The hearing was broadcast live at aph.gov.au/live.

Note: The Parliamentary Standing Committee on Public Works is not involved in the tendering process, awarding of contracts or details of the proposed works. Inquiries on these matters should be addressed to the relevant Commonwealth entities.

Inquiries

Committee Secretariat
02 6277 4636
This email address is being protected from spambots. You need JavaScript enabled to view it.

For more information about this committee, visit its website.

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CPA AUSTRALIA and Chartered Accountants Australia and New Zealand have joined 14 of the world’s largest professional accounting organisations committing to a call to action in response to climate change. The organisations represent 2.5 million accountants globally. 

Chief executive of CPA Australia, Andrew Hunter said, "Climate change presents significant economic and social challenges both now and in the future – challenges that require action from governments, businesses and people from all walks of life.”

“Accountants are uniquely placed and qualified to help businesses and organisations deal with climate change,” said Chartered Accountants Australia and New Zealand chief executive Rick Ellis. “They can quantify the risks, and their financial consequences, providing robust, reliable and transparent information for decision makers, investors and the public.” 

The statement includes actions the accounting profession can take, as well as a commitment from the chief executives of the organisations to support members in the coming months with the resources, information and training needed to meet the challenges ahead.

The transition for economies will rely on adapting economic policies and associated market mechanisms. The accounting profession is central to helping achieve both of these important objectives.

Mr Hunter also said, "The call to action is consistent with, and complements actions taken by, a broad range of regulatory agencies by way of pronouncements and guidance emphasising the economic and business imperatives of response to the multi-faceted challenges of climate change. 

“It also adds to the growing momentum towards identifying strategies for a just and economically efficient transition to net zero emissions.”

Mr Ellis said, "Accountants are already playing a key role assisting organisations to manage their impact on the planet and the impact of climate change on their organisation.

“Our call to action supports both these early adopters who are quantifying risk and accountants following in their footsteps.”

 www.accountingforsustainability.org/abn-climate-action 

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