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Australian Manufacturing Future Fund

27 September, 2018

The Federal ALP Opposition has released details of two policies that would impact on advanced manufacturers under a change of Government.

The ALP proposes to set up an Australian Manufacturing Future Fund if successful at the next federal election, due within the next twelve months. It is aimed at assisting manufacturers, especially SMEs, who face barriers to securing necessary finance for innovation and growth into higher value markets.

The AMFF would be modelled on the Clean Energy Finance Corporation, brokering a mix of public and private funding aimed at reducing the risk profile for new investments. It will offer equity, concessional loans and loan guarantees, not cash grants. It may be open to co-investments with  CEFC and EFIC to target investments that include energy efficiency or export development objectives.

The investment mandate of the proposed Manufacturing Fund will be based on public policy objectives (to be determined after consultation), but the focus will include transformation of the automotive and food manufacturing sectors.

The AMFF would be expected to deliver a return to taxpayers for public funds invested across the range of projects supported.

Further details on the AMFF are available here.

Accelerated Depreciation

The ALP proposes that from 1 July 2020, all businesses operating in Australia be allowed to immediately expense 20 per cent of the value of eligible depreciable assets (those each valued over $20,000) in their first year. The balance will be depreciated in line with normal depreciation schedules after the first year. It is proposed as a permanent change to accelerated depreciation rules, not for a limited time.

The proposal is called the Australian Investment Guarantee and its scope and key design features are:

  • Eligible assets will include tangible machinery, plant and equipment for both upgrades and new purchases (for example, farm tractors and food processing machinery) and intangible assets (“knowledge assets”) which make up an increasingly larger component of non-mining investment (for example, software, patents and copyrights)
  • Investments in structures and buildings are excluded and it would not apply to passenger motor vehicles. It would apply to trucks, vans, utes etc.
  • It would not apply to otherwise eligible expenditure currently claimed under the existing research and development tax concession

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Jimmy 55 | Wednesday, November 7, 2018, 11:52 PM
What a joke, the Rudd Gillard goverment squandered our existing future fund and put us into close to $300 billion in debt and left us with so much to still have to pay. So much of that government is still there. They gave $900 away to each person to buy mainly imports and could not lify support to SME's and exporters. But did not help business directly when in power then. The wasted so much. All employers dont see the more educated people to employ from their usless wasetful eduction revolution either. because it did not help cultivate them Most of Gonski is a waste ( I have acutally read it). It will benefit those in the some parts of country and remote regions, the rest is more money thrown away. The present givernment only adopted it because people who dont realise we have poor education of the basics' think more money will solve it all. I wish people would really research the issues more before elections. We have thrown away many tens of billiuons for no return listening to that guff. Naplan results confirm no improvement in literacy and numeracy. Do you think this party is any different from then. There was 13000 less businesses after them last time, despite aorund 10,000 new ones starting each year for 6 years. They killed businesses. I have read the stats years ago. We need government at all levels to force the machinery they are suppossed to govern to stop being so wasteful.
TC | Thursday, November 8, 2018, 12:55 AM
Interesting idea. However Labour had some interesting ideas last time they were elected and look at the mess they made of that, and Shorten is a leftover from that bunch of useless idiots. We can not let them get back into power or we all will suffer. A recent survey found that almost 50% of existing business owners would not open or start a business in this current environment with all the red tape, Govenment wastage and the rediculous extremely employee bias Fair Work Australia regulations when employing a person.. I know I wouldn't..