A Shorten Labor Government will create an Australian Investment Guarantee (AIG) that provides accelerated depreciation incentives for new capital equipment investments.
Labor’s new AIG will ensure Australian industry has the support it needs to keep up with global developments and make the investments needed to improve productivity and remain globally competitive.
The AIG will enable businesses to deduct up to 20 per cent of the value of new investment in the first year, with the balance depreciated in line with normal depreciation schedules from the first year. Eligible assets include tangible machinery, plant and equipment, trucks and utes for tradies as well as intangible investments in knowledge assets such as patents and copyrights.
Overseas experiences have demonstrated the benefits of accelerated depreciation tax relief arrangements by increasing economic activity, businesses’ cash flow and employment opportunities for high quality jobs.
It will provide a big boost for innovation and position Australian manufacturers as net beneficiaries of the fourth industrial revolution.
The AIG will be complemented by Labor’s $1 billion Advanced Manufacturing Future Fund (AMFF).
Labor’s AMFF will support innovative Australian manufacturing firms who want to grow their businesses and create jobs, but who might find it difficult to obtain private sources of finance.
Labor’s focus is maintaining and enhancing Australian jobs. While Turnbull and his Liberals give tax handouts to multinationals and millionaires, Labor is backing Aussie businesses that employ Australians to make things in Australia.
Labor wants Australia to be a successful advanced manufacturing nation, but to achieve this, government needs to assist firms to modernise and move into high-value, high skill production.
When it comes to Australian jobs and manufacturing the choice between Labor and Liberals could not be clearer.
More information on Labor’s new AIG can be found here.