The Abbott Government is dragging the chain on reforming the legal framework around crowdsourced equity funding – affecting the ability of local tech start-ups to gain vital capital for their projects, according to the Federal Opposition.
“The Abbott Government always talks the talk - but trips itself on the walk - when it comes to innovation reform,” Shadow Parliamentary Secretary to the Shadow Treasurer Ed Husic said today.
“Detailed recommendations on legalising crowdfunding were handed to the Abbott Government in May – but reports suggest the Government’s postponing its response to this.
“Deferring work on establishing crowdsourced equity funding in Australia is a cruel blow to those tech start-ups that need the capital to turn their ideas into commercial reality.
“Having been tasked to consult with the start-up sector by Shadow Treasurer Chris Bowen, the sector keeps telling me it needs sound and certain policy development to help foster a more encouraging investment climate.
“But they’re failing to get this from the Abbott Government and the sector is starting to express its frustration.
“The Abbott Government keeps telling us it’s pro-innovation - but the only thing it’s innovative at is avoiding decisions.
“It talked up reforming the taxation of Employee Share Ownership Plans, only to fail to do this in the Budget. It’s walked away from reforms to tackle multinational profit shifting and sat on its hands on international IT price discrimination.
“Now it is deferring action on legalising crowdsourced equity funding as the rest of the world gets its act together and leaves us trailing woefully behind,” Mr Husic said.