Australia is now one of the major destinations for entrepreneurs who are looking to establish tech companies. In recent years, the region has seen a growth in the number tech startups as well as increases in trading. What makes Australia so attractive today for entrepreneurs is its investment potential and tax benefits that are in the implementation stage.
Tax and rebates
Australia is currently focusing on the tech industry with plans to increase innovation and bring in more investment from outside. These plans are designed to shape Australia into a prominent tech hub similar to Silicon Valley. Investors are drawn to the startups in Australia due to tax breaks enforced by a recently passed legislation. Investors are entitled to 20 percent rebate when investing in startups up to $200,000.
Compared to the US and other western markets, Australia used to suffer a geographical disadvantageous. Many entrepreneurs and investors avoid doing business in the land down under due to the high operation costs and expensive employment. Luckily, in the world today, digital economy has pushed away concepts of boundaries and border limitations. The tax rebates in place will mitigate the cost of labour and bring in large investors to Australia.
Environment and resources
The cost of labour in Australia is still high but what makes it acceptable are the returns. Tech companies benefit from the large pool of highly qualified and talented professionals. Urban centers such as Melbourne and Sydney are most suitable for startups and small businesses. The co-working spaces in these cities help to reduce tech companies’ costs. With an affordable cost and high standard of living, many businesses and workers find Australia a suitable place to setup. The warm weather and health care system are some of the perks that the region offers.
There are many other benefits aside from the tax rebates that entrepreneurs can experience. Prime Minister Malcom Turnbull’s board for Innovation and Science will also play a large part in the plan to encourage and revitalise the tech industry. These changes to the tech market and the overall economy and policies in Australia will only show effects within years. At this moment, everything is only up for speculation but many are hopeful that a positive revolution to the global tech industry is underway.