The power of three Together, governments, entrepreneurs and corporations can spur growth across the G20 The EY G20 Entrepreneurship Barometer 2013 Country profiles Argentina Australia Brazil Canada China France Germany India Indonesia Italy Japan Mexico Russia Saudi Arabia South Africa South Korea Turkey United Kingdom United States European Union
Australia at a glance Annette Kimmitt Managing Partner, Strategic Growth Markets Leader, Australia, EY Adrian Renouf Lead Client Service Partner, NSW Government & Public Sector, EY A strong base but a fragile outlook Key facts Overall Barometer ranking Quartile 1 Population 22 million GNI per capita (PPP) US$42,690 GDP growth 1.7% Exports as % GDP 21% Source: The World Bank, 2012 Australia has a highly favorable environment for entrepreneurial activity, giving it Quartile 1 status in the EY G20 Entrepreneurship Barometer 2013. High education levels, easy start-up procedures and generous tax subsidies serve to strengthen the entrepreneurial ecosystem. It is above on research and development (R&D) spending and leads the pack on the number of scientific and engineering articles published per capita. As a result, the nation has a strong track record of successfully commercializing inventions from wireless LAN to the cochlear bionic ear highlighting its innovation and entrepreneurship prowess. 1 In the G20, Australia is second only to Canada in terms of the ease of starting a business, according to The World Bank, and there is strong media attention on entrepreneurs. This suggests that, while Australia scores low on the cultural perception of entrepreneurship as a career choice, there are few other cultural or regulatory barriers for new entrepreneurs. Nevertheless, the nation has a lower-than- rate of new business activity and self-employment. Some of the possible reasons for this, including its small capital markets and challenges with skills shortages which impact the country s overall entrepreneurial ecosystem, are discussed on the next page. The key shift we have seen since 2011 is a drop in the overall level of confidence in the Australian economy, accompanied by a perception among local entrepreneurs that access to funding has deteriorated significantly. This is particularly notable in relation to bank loans, initial public offerings (IPOs) and seed capital. Australia has small capital markets relative to other developed economies. 2 The nation attracts low levels of private equity (PE) and venture capital (VC) funds and has a relatively limited IPO market. This is a key hindrance for entrepreneurship, as access to funding is fragile in the face of recent economic pressures. 1 The White Hat Guide to Australian Inventions, Discoveries & Innovations, The White Hat website, whitehat.com.au, accessed 20 July 2013. 2 The Treasury and the Department of Industry, Innovation, Science, Research and Tertiary Education, Review of Venture Capital and Entrepreneurial Skills (Commonwealth of Australia, 2013). 2 The power of three
Make your voice heard Australia s pillar scores compared to mature G20 economies 8 7 6 5 4 3 2 1 0 Coordinated support Regulation and taxation Join the debate Tweet #G20ey ey.com/g20ey Education and training Source: EY G20 Entrepreneurship Barometer 2013 Access to funding Australia Entrepreneurship culture Mature G20 economies SWOT analysis Strengths Australia has a strong education system with high enrollment rates. It leads the G20 on secondary school enrollment rates and also performs strongly on tertiary education enrollment. Starting a business is easy The World Bank rates Australia as the second easiest country in the world in which to set up a new enterprise. Australia has a strong innovation framework, with high levels of Government funding for R&D and a high proportion of scientists and researchers. Weaknesses Small capital markets make access to funding a key weakness. 3 Entrepreneurs surveyed in Australia report a marked deterioration in funding in recent years, especially when referring to bank loans, IPOs and sources of seed funding. Skills shortages are an issue for some industries, particularly those related to resource extraction and IT. Entrepreneurship is not seen favorably as a career choice, according to local entrepreneurs surveyed. Innovation, Asia and crowdfunding create new opportunities With a strong education system and research culture, Australia has the tools to produce entrepreneurs in virtually any realm, from retail to biotechnology. The biggest hurdles for enterprises are skills and funding, both of which can be hard to find for some businesses. Though business sentiment in Australia is currently trending downward according to our survey, the overall conditions look strongly favorable for future entrepreneurs. Crucially, the fortunes of Asia s largest economies are strongly tied to the Australian market. While this means the nation is vulnerable to a significant downturn in China, for example, it also means there are huge opportunities for entrepreneurs with international expansion plans. Opportunities One in five entrepreneurs in Australia report a great improvement in access to crowdfunding. This new source of funding could help to alleviate the pressure on more traditional funding instruments, while also funding ventures that lack the prerequisites needed for other sources of capital. Some 29% of entrepreneurs surveyed say that improving Government start-up programs would be the key to accelerating entrepreneurship in Australia. Given Australia s proximity to vast consumer markets and manufacturing bases in Asia, there is significant scope for entrepreneurs to internationalize in line with the rise of major economies in the region. Threats 3 The Treasury and the Department of Industry, Innovation, Science, Research and Tertiary Education, Review of Venture Capital and Entrepreneurial Skills (Commonwealth of Australia, 2013). A challenging national fiscal and economic environment could result in cuts to entrepreneurship programs. Australia is particularly vulnerable to a downturn in China, which has been the main reason for the country s relative insulation from the economic crisis since 2008. Falling access to VC funding could lead to more entrepreneurs leaving to start enterprises abroad. The power of three 3
VC investment has fallen by almost US$1b in the three years to June 2012 What to watch for Access to venture capital funds is a key challenge Australia is highly regarded globally as a target for foreign VC investment. 4 To support the sector, the Government has unveiled a number of initiatives designed to increase VC activity. For example, the Early Stage Venture Capital Limited Partnerships Program (ESVCLP) is designed to stimulate the VC sector by providing an optimized structure into which VC fund managers can pool investor capital. 5 An ESVCLP works like a limited partnership that makes eligible investments and the limited partners (the investors) do not incur any tax liability on income and capital gains received. In another state-funded initiative, Australia s Innovation Investment Fund (IIF) is a venture capital program for new innovation funds. The fund co-invests with private sector VC funds to support early-stage companies and commercialize their products. The IIF has supported over 100 new technology companies and invested over US$301m since 1998. But despite these examples of best practice, entrepreneurs are increasingly concerned about the Australian VC environment, and current levels of funding are low compared to other mature countries. Some 34% of entrepreneurs in Australia surveyed report a deterioration in venture capital funding, a perception that is reflected in the historical data. One key reason for this is the overall fall in investor and consumer confidence in Australia in recent years. 6 However, the knock-on effect of this will be to limit the number of innovation-led start-ups and other new ventures. In part, this may simply be cyclical, but any measures to support investor confidence and attract new sources of venture funding will be important in ensuring that Australia s entrepreneurs don t lose their drive. Business expenditure on R&D (% of GDP) against venture capital (1= hard, 7= easy) Business expenditure on R&D (% of GDP) 3 2.5 2 1.5 1 0.5 0 4.5 4 3.5 3 2.5 2 Venture capital availability (1= hard 7= easy) Australia s Innovation Investment Fund has invested US$301m in new technology companies since 1998 Source: OECD, World Economic Forum Business expenditure on R&D (% of GDP) Venture capital availability (1= hard 7= easy) 4 A Groh et al., The Global Venture Capital and Private Equity Country Attractiveness Index: 2013 Annual, IESE Business School, University of Navarra, 2013. 5 Early Stage Venture Capital Limited Partnerships (ESVCLP), AusIndustry website, ausindustry.gov.au, accessed 20 July 2013. 6 Australian consumer sentiment dips, Market Watch website, marketwatch.com, accessed 20 July 2013. 4 The power of three
How the government is helping The Australian Small Business Commissioner The Australian Small Business Commissioner will represent small business at a national level. It will champion small business issues and lobby relevant areas of Government. It will also provide advice to small businesses about the most appropriate and lowest-cost dispute resolution services available for particular circumstances. In addition, it will form a new one-stop-shop for small business services and information. Launch date: 2013 Most relevant pillar: coordinated support Turning the unemployed into entrepreneurs Australia s New Enterprise Incentive Scheme (NEIS) provides unemployed job seekers with accredited small business training, business mentoring, and income support to help them turn a business idea into a viable business and become a self-employed business owner. The NEIS provides an allowance of AU$474.90 (US$492) per fortnight for 52 weeks. It generates over 6,000 new businesses each year. Throughout Australia, 70% of all small startups fail in their first year, but 80% of NEIS companies are still in business three years after they started. Launch date: 1985 Most relevant pillar: coordinated support Women in Global Business (WIGB) program This program aims to increase female participation in international trade and investment. The objective is to enhance the profile of Australian businesswomen and connect them to international networks to create business opportunities. In 2012, WIGB launched the first of a series of capability- and skillsbuilding education and training modules. Launch date: 2011 Most relevant pillar: coordinated support Key insight: The value of a strong skills base Anthony Podesta, McMillan Shakespeare, Australia McMillan Shakespeare was the first salary packaging provider in Australia and now dominates a thriving industry in Australia and New Zealand, with new vehicle leasing and asset management services. I believe there is considerable potential to develop entrepreneurial education in Australia. It is not well catered for by mainstream education. I would like to see our schools offer content specifically for students who may go on to become entrepreneurs. A greater focus on entrepreneurship education might also help to dispel some unhelpful myths about entrepreneurs. In particular, people have this image of entrepreneurs as getrich-quick cowboys. Of course there are those who just want their five minutes of fame, but genuine entrepreneurs want to work hard, make long-term change and bring real benefits to people. Education can give people a proper appreciation of the value of real entrepreneurs. At the moment, the choice for most entrepreneurs is either enrolling in a business school, or not, and just working on their own. That s where mentoring can help support entrepreneurs, but we need innovation here. For example, what about embedding an entrepreneurial mentor within a company? Someone with the energy, creative drive and experience to support the entrepreneur. Or the Government could, for example, fund a matching service for mentors with clear guidelines that match entrepreneurs with universities or professional organizations. There is huge scope for innovation here. The power of three 5
44% Access to funding Pillar ranking: 5 of entrepreneurs from Australia under 40 find it very difficult to access funding Access to funding is a concern, especially for young entrepreneurs Access to funding Australia G20 Period IPO market activity IPO amount invested (% of GDP) 0.32 0.22 2009-11 Access to credit Domestic credit to private sector (% of GDP) Venture capital availability (Scale of 1=impossible to 7=very easy) 127.3 99.0 2008-10 3.6 3.0 2009-11 M&A deal value (% of GDP) 7.4 3.4 2010-12 Sources: The World Bank, Dealogic, IMF, World Economic Forum Small capital markets are a key hindrance for entrepreneurship in Australia. Over the years, Australia has attracted low amounts of private equity compared to other G20 companies. Similarly, the market for IPOs and the VC sector are both relatively small, particularly compared to other mature G20 economies. However, despite the limitations of small capital markets, Australia s advanced and innovative financial sector supports the country s strong performance overall in this area of the Barometer. Enthusiasm for crowdfunding is an interesting strength for Australia, with a number of new platforms opening up in recent years, such as ASSOB and Pozible. 7 This was reflected in the fact that 40% of local entrepreneurs thought conditions had improved in the last three years, compared to 34% for the G20 overall. While this appears positive, greater support could still be provided here, to raise awareness and uptake of emerging crowdfunding opportunities. VC availability is also a relative strength for Australia, although as the What to watch for section highlights, this represents a small and declining proportion of GDP compared to other mature economies. Looking ahead, the general sentiment of Australia s entrepreneurs on access to funding is a concern. This is especially the case for young entrepreneurs, some 44% of whom find access to funding very difficult. Local entrepreneurs want to see more Government funding and more tax incentives for small business investment. Overall, 53% of entrepreneurs from Australia tell us that access to bank loans has deteriorated, while 37% say that Government funding has deteriorated. Amount invested in IPOs in Australia (US$m between 2005 12) Amount invested (US$m) 20000 16000 12000 8000 4000 53% of entrepreneurs from Australia surveyed say that access to bank loans has deteriorated 0 2005 2006 2007 2008 2009 2010 2011 2012 Source: Dealogic 7 Crowdfunding Platforms in Australia and New Zealand, Crowdfund it website, crowdfundit.com.au, accessed 21 July 2013. 6 The power of three
Only 48% Entrepreneurship culture Pillar ranking: 5 of local entrepreneurs believe Australia has a culture that encourages entrepreneurship, down from 80% in 2011 Australia s productive and innovative research culture produces world-class results Entrepreneurship culture Australia G20 Period R&D spending (% of GDP) 2.4 1.6 2007-09 Scientific and technical journal articles (per 10,000 people) Cost of resolving insolvency (% of estate) Source: The World Bank 8.7 3.3 2007-09 8.0 11.8 2010-12 Australia has a strongly favorable entrepreneurship culture, which provides good support to local entrepreneurs. This is largely down to a strong emphasis on innovation and research, along with low insolvency costs and higher-than- media attention devoted to entrepreneurs. Australia has many well-trained scientists and researchers practicing at its universities. Studies show that innovative research programs at universities can lead to increased entrepreneurial activity in those research fields and in the geographical vicinity of the university. 8 Policy-makers have also directed large amounts of funding toward R&D, and as a result, Australia publishes more scientific and technical journal articles (per 10,000 people) than any other G20 nation. Despite a culture that celebrates research and innovation, just 48% of entrepreneurs surveyed in Australia agree that their country encourages entrepreneurship, down from 80% in 2011. No substantive change in policy occurred to explain this change, which implies it could be more a change of sentiment than circumstance. The survey also shows that while Australia has a fear of failure broadly in line with other mature economies, it leads both mature and rapid-growth economies in celebrating self-made wealth. This is a vital element in ensuring a robust entrepreneurship culture, but greater effort could be made in encouraging entrepreneurship as a career choice (a key weakness locally) and promoting the support mechanisms offered by the Government. Scientific and technical articles (per 10,000 people) 10 9 8 7 6 5 4 3 2 1 0 Indonesia India Saudi Arabia Mexico China South Africa Brazil Argentina G20 Russia Turkey Japan South Korea Italy France EU Germany UK US Canada Australia 3.3 Australia spent 2.4% of its GDP on R&D, compared to the G20 1.6% (2007 09 ) Source: The World Bank, 2007 09 8 N Hausman, University innovation, local economic growth, and entrepreneurship, US Census Bureau Center for Economic Studies Paper, No. 12-10, Harvard University, 2012. The power of three 7
It takes only 2 days Tax and regulation Pillar ranking: 8 to set up a business in Australia, which is a fraction of the G20 of 22 days (2010 12 ) Though superior to most G20 nations, sentiment toward the tax and regulatory system is negative Tax and regulation Australia G20 Period Ease of starting a business Start-up procedures (number) 2.0 7.6 2010-12 Time to start a business (days) 2 22 2010-12 Cost to start a business (% of income per capita) 0.7 9.4 2010-12 Paid-in minimum capital to start a business (% of income per capita) 0.0 17.9 2010-12 Business regulations Time spent on tax issues (hours) 109 347 2010-12 Labor market rigidity Cost of firing (weeks of wages) 4 50 2007-09 Labor and tax contributions (% of commercial profits) 20.3 24.0 2012 Taxation Total tax rate (taxes and mandatory contributions borne by the business expressed as a share of commercial profit) 47.5 49.7 2012 Indirect tax rate (taxes collected by the company and remitted to the tax authorities) 10.0 14.2 2012 Source: The World Bank Australia performs well in the tax and regulatory pillar, especially in the hard data. However, its overall ranking is pulled down by the negative perception of the business environment expressed by local entrepreneurs. In many ways, the country compares favorably in this area with other countries. For example, Australia s direct and indirect tax structure is internationally competitive. Similarly, business-friendly regulation data suggests a very supportive environment, but sentiment remains below. As such, despite what the data may suggest, Australian entrepreneurs want to see more simplified tax rules and regulations and a reduction of corporate income tax. Businesses seeking international growth are experiencing increased compliance costs due to transfer pricing rules; while there have been both winning and losing sectors in terms of entrepreneurial tax offsets. Australia s R&D tax concessions remain internationally competitive in their support of innovation, which includes the ability for certain entrepreneurial businesses to access cash refunds for their tax losses on a quarterly basis. 9 Nevertheless, increases in tax incentives are still identified as having the greatest impact: 53% of local entrepreneurs are still calling for an increase in tax incentives focused on innovation. 9 R&D Tax Incentive, AusIndustry website, ausindustry.gov.au, accessed 20 July 2013. 10 New National Business Names Registration System, Business.gov.au website, business. gov.com, accessed 10 July 2013. More positively, compared to other G20 countries, Australia s regulatory environment is very supportive of start-ups, with a range of online systems that improve efficiency. For example, the National Business Names Registration Service allows all new businesses to register only once at the national level (replacing separate state and territory services), while a dedicated Government website, business.gov.au, allows Australian businesses to comply quickly and easily with government requirements such as incorporation procedures, licensing and taxation. 10 Time taken to start a business Number of days 140 120 100 80 60 Australia Canada Italy Turkey US France Mexico South Korea 40 20 0 Source: The World Bank, 2010 12 G20 UK EU Germany South Africa Saudi Arabia Japan Russia Argentina India China Indonesia Brazil 22 8 The power of three
50% Education and training Pillar ranking: 2 of local entrepreneurs report improvement in entrepreneurship-specific courses at universities and business schools Australian respondents call for more entrepreneurial training Education and training Australia G20 Period Public spending on education (% of GDP) 4.9 4.8 2008-10 Secondary school enrollment (total enrollment expressed as a percentage of the population of official secondary education age) Tertiary enrollment (total enrollment expressed as a percentage of the total population of the five-year age group following on from secondary school leaving) 129.2 95.0 2008-10 76.0 53.5 2008-10 Source: The World Bank Public spending on education is in line with other mature economies, and Australia has very high enrollment statistics across all levels of education. Entrepreneurship education is also above for a mature economy. This makes education an important strength for the country, as highly qualified talent represents a vital ingredient for any thriving entrepreneurial ecosystem, particularly those that support advanced technology, knowledge-based or scientific enterprises. However, since the 2011 study, there have been some interesting reversals in sentiment within this pillar. For instance, 69% of Australia s entrepreneurs surveyed think students need access to specific training to become entrepreneurs, while in 2011, 64% of respondents thought this was not needed. Similarly 29% currently think the Government s training programs supporting entrepreneurship have deteriorated. Both these reversals suggest the Government needs to do more to support entrepreneurship in the current climate. One practical measure, which is gaining traction across the G20 countries, is to ensure greater awareness of an entrepreneurial mindset at an earlier age, rather than only in tertiary education or later. For 38% of Australian entrepreneurs, the top priority for improving student perception of entrepreneurship is the promotion of success stories to students. This shows how important it is for entrepreneurs to have access, not only to the right training, but also to informal mentors who can share their success stories. Encouragingly, about 60% of entrepreneurs surveyed from Australia report an improvement in access to mentors. Public spending on education (% of GDP) 69% of respondents think students need access to specific training to become entrepreneurs, which is the lowest of all mature market results 7 6 5 4 3 2 1 G20 4.8 0 Indonesia India Turkey Japan China Russia Italy Germany Australia Canada South Korea Mexico US UK Brazil South Africa EU Saudi Arabia Argentina France Source: The World Bank, 2007 09 The power of three 9
Only 12% Coordinated support Pillar ranking: 15 Entrepreneurship is supported by a range of large Government initiatives Like many mature economies, coordinated support is one of the weaker areas in Australia s overall entrepreneurial ecosystem. However, the country s result is nevertheless better than other key mature economies, including the US and Canada. Notable strengths for Australia are mentor programs, business incubators and entrepreneurial workshops, while close to one third of respondents report a deterioration in Government start-up programs. While Australia s entrepreneurs see business incubators as the most important support mechanism for improving the long-term growth of entrepreneurship in Australia, they believe the Government should be focused on delivering more start-up programs. Australian entrepreneurship is supported by a range of large Government initiatives. AusIndustry, for example, delivers a wide range of programs that support businesses worth about AU$2b (US$2.07b) each year in areas such as clean technology, VC, collaboration, import/export assistance, innovation and R&D. 11 Commercialization Australia, meanwhile, helps turn new concepts into new businesses. 12 This initiative uses a merit-based selection process to lend targeted support to promising new products, services and innovations. This can include specialist advice, proof of concept and early-stage commercialization activities. Finally, Enterprise Connect provides business improvement services through a national network of centers and more than 100 business advisers and facilitators. 13 Its services include conducting business reviews free of charge. Start-ups in Australia therefore have access to a relatively comprehensive suite of Government assistance programs should they choose to seek these out. Top five factors of Government-tailored support that would be most effective Government start-up/other programs, including grants Small business lending schemes Government-sponsored university incubators Entrepreneurial workshops Loan guarantees 9% Source: EY G20 Entrepreneurship Barometer 2013 of local entrepreneurs surveyed have used or intend to use university incubators; this is less than a third of the G20 of 42% 13% 12% 12% 29% 54% of Australia s entrepreneurs surveyed believe that mentoring opportunities have improved 11 OECD Studies on SMEs and Entrepreneurship: SMEs, Entrepreneurship and Innovation, Organisation for Economic Co-operation and Development, 2010. 12 About Us, Commercialisation Australia website, commercialisationaustralia.gov.au, accessed 15 July 2013. 13 About Us, Enterprise connect website, enterpriseconnect.gov.au, accessed 15 July 2013. 10 The power of three
Rankings table Ranking Access to funding Score Entrepreneurship culture Score Tax and regulation Score Education and training Score Coordinated support Score 1 United States 7.12 United States 7.67 Saudi Arabia 6.40 France 6.58 Russia 6.23 2 United Kingdom 6.86 South Korea 7.53 Canada 6.34 Australia 6.53 Mexico 5.89 3 China 6.75 Canada 7.45 South Korea 6.34 United States 6.50 Brazil 5.87 4 Canada 6.62 Japan 7.28 United Kingdom 6.19 South Korea 6.40 Indonesia 5.84 5 Australia 6.48 Australia 7.18 South Africa 6.10 EU 6.25 India 5.76 6 South Africa 5.95 United Kingdom 7.00 Japan 6.07 United Kingdom 5.98 China 5.75 7 Japan 5.81 Germany 6.88 Germany 5.84 Germany 5.89 Turkey 5.66 8 South Korea 5.75 EU 6.07 Australia 5.75 Argentina 5.85 South Africa 5.65 9 Brazil 5.67 France 5.68 Russia 5.65 Canada 5.81 Argentina 5.64 10 Indonesia 5.53 Russia 5.05 EU 5.48 Brazil 5.78 Germany 5.53 11 India 5.48 India 4.95 Turkey 5.45 South Africa 5.67 France 5.41 12 EU 5.41 Brazil 4.88 Indonesia 5.38 Saudi Arabia 5.66 Saudi Arabia 5.39 13 Saudi Arabia 5.25 Italy 4.67 United States 5.33 Italy 5.47 EU 5.37 14 Germany 5.23 South Africa 4.33 Mexico 5.21 Russia 5.46 South Korea 5.36 15 Russia 5.04 Turkey 4.30 France 5.12 Mexico 5.32 Australia 5.31 16 France 4.74 Argentina 4.06 China 5.07 Japan 4.72 Canada 5.29 17 Turkey 4.57 Mexico 3.96 Brazil 4.83 Turkey 4.39 United Kingdom 5.19 18 Mexico 4.42 China 3.88 Italy 4.76 China 4.35 Japan 5.04 19 Italy 4.03 Indonesia 3.80 India 4.39 Indonesia 3.88 Italy 4.97 20 Argentina 3.27 Saudi Arabia 3.38 Argentina 4.31 India 3.49 United States 4.85 About the EY Entrepreneurship Barometer model The EY G20 Entrepreneurship Barometer 2013 introduces a model for scoring countries across the five pillars of entrepreneurship. 14 The purpose of this model is to help identify areas of relative strength by country and where opportunities for improvement lie. The model is composed of qualitative information (from our survey of more than 1,500 entrepreneurs) and quantitative data based upon entrepreneurial conditions across the G20 economies. For each pillar, excluding coordinated support, this information is weighted 50-50 between qualitative and quantitative inputs. For coordinated support, given a lack of quantitative indicators, this is based solely upon the survey responses. The advantage of integrating both the survey results and quantitative data is the ability to provide an assessment of the current level and the trends in a G20 entrepreneurial ecosystem based upon local sentiment. To this end, official statistics (for example, on the time taken to start a business or the tax burden) provide a baseline for each member country. Survey information is an important complement to the baseline picture these statistics provide. Entrepreneurs feedback on the pace of improvement or deterioration in conditions in their country s entrepreneurship ecosystem is incorporated in the model alongside the hard statistics. Full details of the Barometer s methodology can be found on page 66 in the main EY G20 Entrepreneurship Barometer 2013 report. 14 Note: As per the G20 membership, this list comprises 19 individual countries and also the European Union (EU), as an additional member. Our rankings show the performance of each country, along with an aggregate performance for the 27 EU Member States. The power of three 11
EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. About EY s Strategic Growth Markets Network EY s worldwide Strategic Growth Markets Network is dedicated to serving the changing needs of high-growth companies. For more than 30 years, we ve helped many of the world s most dynamic and ambitious companies grow into market leaders. Whether working with international mid-cap companies or early-stage venture-backed businesses, our professionals draw upon their extensive experience, insight and global resources to help your business succeed. ey.com/sgm 2013 EYGM Limited. All Rights Reserved. EYG no. CY0577 ED 0715 This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. The opinions of third parties set out in this publication are not necessarily the opinions of the global EY organization or its member firms. Moreover, they should be viewed in the context of the time they were expressed. ey.com Contacts Annette Kimmitt Managing Partner, Strategic Growth Markets Leader, Australia, EY +61 3 9288 8141 annette.kimmitt@au.ey.com Adrian Renouf Lead Client Service Partner, NSW Government & Public Sector, EY +61 2 8295 6117 adrian.renouf@au.ey.com