THE Victoria Tourism Industry Council (VTIC) welcomes investments in the visitor economy made by the Andrews Labor government in the 2016-17 State Budget.

VTIC is pleased to see the government follow through with significant funding allocations which align with our pre-budget submission priorities - increased visitor spending in regional Victoria, and investing in tourism assets across the state.

VTIC Chief Executive Dianne Smith said, “The benefit of drawing more international visitors to regional Victoria is huge. The Regional Tourism Infrastructure Fund and the Regional Events Fund will boost the tourism offerings across the state, encourage visitation and help create jobs in regional Victoria.”

"It would be great to see every international visitor to Melbourne going to our regions as well.”

The visitor economy currently contributes $19.6 billion to the Victorian economy and employs more than 200,000 people. With the right settings, this could grow to $34 billion and 310,000 jobs by 2020.

“Increasing the payroll tax threshold will ease the cost of doing business for the thousands of small and medium businesses in our sector. This will help the industry grow and help meet these ambitious targets,” said Ms. Smith.

Some of the key tourism investments included in the state budget are:

• $101 million Regional Tourism Infrastructure Fund, including $48.2 million for the redevelopment of the Penguin Parade Visitor Centre at Phillip Island Nature Parks;  
• $38 million over 2 years for Visit Victoria Marketing;
• $20 million over 4 years for a Regional Events Fund;
• $9 million over 2 years for Business Events;
• $66 million for the Victorian Government Business Office network, with 18 offices around the world, including five in China, as part of Victoria’s China Strategy; and
• $8 million for the Gundij Mirring Traditional Owners to implement stages one and two of the Budj Bim Master Plan, which will open this natural heritage landscape to all visitors and strengthen a bid for the national heritage landscape to receive UNESCO World Heritage listing.

The visitor economy will also benefit from the $115 million investment in the Creative State, which includes:

• $7 million to support a cultural hub for Bendigo;
• $23 million to expand and upgrade the state’s cultural collections storage, including a new facility in Ballarat;
• $50 million boost for the State Library of Victoria, Arts Centre Melbourne and Melbourne Recital Centre; and
• $14.2 million for the screen industry, including funding for the Melbourne International Film Festival

Getting around Melbourne and Victoria will also be made easier with $1.3 billion allocated to improve regional rail services and $134 million for a safety upgrade to the City Loop.

As well as giving the sector a good confidence boost, VTIC is pleased that the government has delivered some tax relief to the thousands of small businesses that contribute to the visitor economy.

VTIC will continue to advocate for strategic investment in the sector and more practical measures that lower business costs and help realise the significant jobs potential of the tourism and events industry in this state.

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice.

Tourism and events are growth industries for Victoria and contribute more than $20 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au  

TWO NEW initiatives designed to make investment in Australian start-ups more attractive will be in place for the 2016-17 financial year after passing the Senate.

Minister for Industry, Innovation and Science Christopher Pyne said the measures were part of the government’s National Innovation and Science Agenda, which would drive smart ideas that create business growth, local jobs and global success.

“These tax measures are designed to broaden and diversify the economy through economic policies that build growth and productivity,” Mr Pyne said.

“The Tax Incentive for Early Stage Investors and New Arrangements for Venture Capital Limited Partnerships will promote investment in innovative high-growth potential start-up companies and improve businesses’ access to venture capital.

“Over 4,500 startups are missing out on equity finance each year. These measures will help startups get access to crucial funding to grow their startup.

“Investors, venture capital funds and innovative companies in all industries will benefit from these measures,” he said. 

The Tax Incentive for Early Stage Investors gives tax concessions to eligible early stage investors who invest in qualifying companies. The concessions include a capped 20 percent non-refundable tax offset and 10 year capital gains tax exemption for investments.

The New Arrangements for Venture Capital Limited Partnerships provide a range of changes that will improve access to capital and make investing in venture capital more user-friendly and internationally competitive.

www.innovation.gov.au.

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THE Australian Parliament’s Trade and Investment Growth Committee has released its report entitled Inquiry into Australia’s Future in Research and Innovation.

The Inquiry examined Australia’s innovation system from the creation of ideas through research and innovative thinking, to the commercialisation of these ideas.

The Chair of the Committee, Mr Ken O’Dowd MP said, “Australia faces a world of rapid change as technology creates new products, new processes, and new industries. New innovative companies are expected to significantly contribute to Australia’s economy and assist in its diversification, increasing employment and improving its global competitiveness.”

“New innovative businesses need to be flexible and globally focussed from the outset. For them, it is no longer the case that the big will consume the small—instead, the fast will surpass the slow.” Mr O’Dowd said.

The report made six recommendations:

• Emerging industries should be identified where strategic research investment could enable Australia to become a world leader.
• There should be a review of overseas models of university-business collaboration to identify strategies which could be introduced in Australia.
• Initiatives introduced as part of the National Innovation and Science Agenda should be reviewed after three years of operation to determine their effectiveness and whether the programs should be expanded.
• If a patent box scheme is introduced, it should be subject to a sunset clause after three years of operation, in addition to a review.
• The Manufacturing Finance Corporation proposal should be reviewed.
• The Advanced Manufacturing Tax proposal should be reviewed.

The report is available from the Committee’s website.

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THE House of Representatives Environment Committee today presented its report into the Register of Environmental Organisations, a government scheme that enables eligible environmental organisations to receive tax-deductible donations.

The report centres on the administration of the Register, and how the Register supports communities to take practical action to improve the environment. The Committee has identified some key areas of possible reform of the Register, including measures relating to:

• the operation of the Register;
• activities undertaken by organisations listed on the Register; and
• the integrity of the current regulatory framework for registered organisations.

The Committee acknowledges the high level of public interest in the inquiry, having received over 685 submissions and a significant volume of correspondence. A substantial portion of this evidence originated from organisations currently listed on the Register. In recognition of this strong interest in the inquiry, the Committee undertook an extensive program of public hearings and site inspections around Australia, to hear firsthand about the range of environmental work being supported by the Register.

The Committee’s report is accompanied by a dissenting report from the Labor members of the Committee, and additional comments from the Member for La Trobe, Mr Jason Wood MP.

A full copy of the Committee’s report can be found on the inquiry’s website 

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