Industry Briefing Session - Melbourne

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1 AusIndustry YOUR Single Business Service Presentation to The 2015 Rail Supplier Industry Briefing Session - Melbourne by John Macdonald Assistant State Manager Victoria Department of Industry and Science

2 AusIndustry is The New Single Business Service On 1 July 2014 The Australian Government introduced a new Single Business Service to simplify and streamline the way Australian businesses access government information & services The Single Business Service is made up of: o A consolidated online presence o A contact centre support line Phone o An expert face-to-face business facilitation network - AusIndustry

3 Australian Government Initiatives Reviews of the South Australian and Victorian Economies Shortly after the announcements by Ford, Holden and Toyota, that they intended to cease production in Australia by 2017, the Australian Government announced and conducted reviews of the South Australian and Victorian economies to: o Provide an assessment of each State s economic situation o Explore key challenges in the automotive and components sectors, and o Identify emerging sectors of high growth in which each state has comparative advantages See SouthAustralianandVictorianEconomies/Documents/GrowingOpportu nities-southaustraliaandvictoria.pdf

4 Australian Government Initiatives Reviews of the South Australian and Victorian Economies The Reviews found the areas of comparative advantage in Victoria include: o Advanced manufacturing o Biomedical products o Education o Financial and Professional Services o Food and Agriculture o Health Services o Mining equipment, Technology and Services o Tourism Growth of more SMEs, particularly in emerging sectors and services, is a priority SMEs have the greatest potential for capturing growth opportunities in high value-added production

5 Industry Innovation and Competitiveness Agenda Helping Businesses Grow The reviews of the South Australian and Victorian economies also led to the creation of the Government s new industry policy direction: The Industry Innovation and Competitiveness Agenda see Competitiveness-Agenda.aspx The Agenda centre-piece is the Industry Growth Centres Initiative ($188.5mil over first four years) which will: o Increase competitiveness and productivity in five growth sectors where Australia already has a competitive advantage o Help Australia shift into high value and export focused industries o Enable national action on key issues such as deregulation, skills, collaboration & commercialisation o Help the sectors work with enabling services and technologies, such as ICT.

6 Industry Innovation and Competitiveness Agenda A Sector Based Approach A sector based approach to drive growth, productivity and competitiveness in Australia s industries Strong alignment with contemporary international industry policy thinking o USA s Small Business Administration s regional cluster initiative o Canadian business-led networks of Centres of Excellence o UK s Catapult Centres A sector based initiative will: o Enable key growth sectors to become self reliant and grow o Position Australia as a world leader to tackle competitive pressures through collaboration o Ensure our key growth industries can deliver the economic prosperity needed in a globalised economy

7 Industry Innovation and Competitiveness Agenda Industry Growth Centres being established for 5 Key Sectors ENABLING TECHNOLOGIES AND SERVICES

8 Industry Innovation and Competitiveness Agenda Industry Growth Centres All Industry Growth Centre Chairs have been appointed: o Mr Andrew Stevens - Advanced Manufacturing o Ms Elisabeth Lewis-Gray METS o Mr Peter Schutz - Food and Agribusiness o Dr Bronwyn Evans - Med Tech and Pharma o Mr Reg Nelson - Oil, Gas and Energy Resources The Growth Centre Advisory Committee was established on 17 February: o Comprises the Growth Centre Chairs & 4 independent members Committee Chair, John Grill AO Carolyn Hewson AO Catherine Livingstone AO Dr Andrew Liveris AO

9 Industry Innovation and Competitiveness Agenda Industry Growth Centres being established for 5 Key Sectors Each Growth Centre will set a long-term strategy for their sector and deliver activities that address four themes: Identify regulations that are unnecessary, overburden-some or impede the sector s ability to grow, and suggest possible reforms Improve engagement between research and industry, and within industry, to achieve stronger coordination and collaboration of research and stronger commercialisation outcomes Improve capability of the sectors to engage with international markets & global supply chains Improve management and workforce skills The Initiative will also facilitate connections between sectors and enabling capabilities and services, such as ICT

10 Innovation and R&D R&D Tax Incentive Programme A broad based, market driven entitlement programme year to foster R&D (especially in SMEs) For all industries, all company sizes To encourage more businesses to carry out R&D (especially SMEs) Jointly delivered by AusIndustry & ATO More targeted definition of eligible R&D No cap on claims Partnerships, tax exempt entities, and Sole Traders & Trusts are excluded

11 Innovation and R&D R&D Tax Incentive Programme Firms claim in arrears <10 months after end of tax year 45% refundable tax offset for eligible entities with an aggregated turnover under $20m 40% non-refundable tax offset for eligible entities with an aggregated turnover over $20m Must keep records of activities and expenditure Unsure if you are eligible? Try the online interactive eligibility tool

12 Entrepreneurs Infrastructure Programme (EIP) $484.2m to support Australian businesses to Innovate and Grow EIP is the Australian Government s flagship initiative for business competitiveness and productivity at the firm level Business Management Research Connections Services and grants available via 3 elements: o Business Management Accelerating Commercialisation o Research Connections o Accessing Commercialisation

13 Entrepreneurs Infrastructure Programme Stream 1: Business Management For: Advanced Manufacturing Medical Tech and Pharmaceuticals Oil, Gas & Energy Resources Remote Australia ($750k) Food & Agribusiness Mining Equipment, Technologies & Services Enabling Technologies & Services A Business Must: Have an ACN Be solvent & have $1.5m - $100m turnover Have traded for 3 plus consecutive years No previous Business Review in past 5 years

14 Entrepreneurs Infrastructure Programme 1: Business Management - Business Evaluations A holistic assessment of the business tailored in content to suit the business Can assess: Core Competencies Business Model Goals and Objectives Industry Information, Trends and Analysis Performance and Benchmarking Leadership Strategic Alliances Innovation and Creativity Market Appraisal Strategic Strengths & Weaknesses Financial Appraisal and Sensitivity Performance & Sustainability

15 Entrepreneurs Infrastructure Programme 1: Business Management - Supply Chain Facilitation A practical approach for eligible businesses to develop their supply chain capabilities and improve their ability to interact with, and supply into, new and existing markets This will be achieved by: Sharing information on supply chains Identifying business level improvement opportunities within a supply chain Building the capability & skill of individual firms to secure supply chain opportunities Facilitating quality connections between businesses and principal buyers, both domestically and globally

16 Entrepreneurs Infrastructure Programme 1: Business Management - Business Growth Services a tailored engagement for eligible high growth potential businesses, of up to two years, focussed on developing and embedding business capabilities, knowledge, strategies and connections to accelerate growth Advice and Mentoring Relationship Management Leadership Development - Design thinking - Business model - Competitive Strategy - Blue Ocean - Innovation - Enabling the enablers Systems, Processes and Finance - ICT - Logistics, Channels to export - Funding growth - Lean / CIP - Product/service Design and production execution Organisational Culture, Strategy and Capabilities - Design Integration - Organisational Strategy and Change Management Intelligence and Knowledge - Market / sector intel - Knowledge Management - Big data/trends - Research Connectivity peer to peer, research, investment, supply chain, expert networks

17 Entrepreneurs Infrastructure Programme 1: Business Management - Business Growth Grants Co funded grants to engage external expertise to assist businesses with implementing improvements recommended through a Business Evaluation, Supply Chain Facilitation or a Business Growth Service Business Growth Grants reimburse up to half the cost of engaging a consultant (up to $20k) to make business improvements recommended as a result of Business Management or (former) Enterprise Connect services

18 Entrepreneurs Infrastructure Programme Stream 2: Research Connections Research Connections is a free one-on-one facilitated service delivered by experienced facilitators Following an initial business research needs assessment you will be matched with a Facilitator who will help your business identify: o Business opportunities (eg. IT, testing and prototyping facilities) o Critical research areas for improvement (products / processes / services) o Strategic research opportunities into new / existing markets o The best source of expertise, suppliers of technology and technical knowledge advice o Ways to improve access to STEM expertise

19 Entrepreneurs Infrastructure Programme Stream 2: Research Connections After completing the facilitated service, your Facilitator will provide a report containing tailored information & options Your Facilitator may also work with you to apply for a matched $ for $ grant up to $50k (inc GST) for 2-12 months to support: o Engagement of a Publicly Funded Research Organisation to undertake research activities for your business o The placement of a researcher in your business to develop and implement a new idea with commercial potential o Access to research infrastructure o See

20 Entrepreneurs Infrastructure Programme Stream 2: Research Connections But wait..there s More! A business may apply for a SECOND Research Connections grant Applications will be accepted within six weeks (either before or after) the completion of the first granting period Applicants will need to work with their Facilitator and undergo a further business research needs assessment before a second grant is approved The project must commence within three months of the application for the second grant being approved A business may only receive a maximum of two Research Connections grants

21 Entrepreneurs Infrastructure Programme 3: Accelerating Commercialisation Accelerating Commercialisation will help Australian entrepreneurs, researchers, inventors, start-ups, commercialisation offices and SMEs: Accelerate the commercialisation of novel intellectual property in the form of novel products, processes and services Create new businesses based on novel intellectual property with high growth potential Facilitate greater commercial and economic returns from both public and private research and development investment to drive business growth and competitiveness Grants up to $1mil on a 1:1 basis - IF you apply for $

22 Case Study: Global Kinetics Corporation Pty Ltd Melbourne based medical technology company $400,000 grant Developed Parkinson's KinetiGraph (PKG) System, a unique solution for neurologists in the management of Parkinson's disease symptoms PKG remotely records patient symptoms and reports this information to health professionals, allowing them to optimize drug performance The system also reminds the patient when to take their medication

23 AusIndustry Your Single Business Service Helping You on Your Business Journey

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