Go Australia (走进澳洲) – Page 2

Second stimulus to pump $66B into Australian economy

A $17.6 billion stimulus package has been announced for businesses and households to deal with challenges posed by the spread of the coronavirus.

The Federal Government has released its second stimulus package, which will see a total of $189 billion injected into the economy to keep businesses in business.

This funding figure includes $66.1 billion of new funding from the latest economic support package.

The package will include assistance for businesses to keep people in a job, regulatory protection and financial support for businesses to stay in business, and support for households including casuals, sole-traders, retirees and people on income support.

Up to $100,000 is available for eligible small and medium sized businesses that employ people, with a minimum payment of $20,000, to help them keep operating, pay the rent and bills, and retain staff.

Under the enhanced scheme from the first package, employers will receive a payment equal to 100 per cent of their salary and wages withheld, up from 50 per cent, with the maximum payment increased from $25,000 to $50,000. Additionally, the minimum payment has been increased from $2000 to $10,000. It will be available from 28 April 2020.

Related stories:

The Federal Government aims to incentivise businesses to hold on to more of their workers by linking the payments to staff wage tax withholdings. The payments are tax free and will flow automatically through the Australian Taxation Office.

It expects to benefit around 690,000 businesses employing around 7.8 million people.

Small and medium business entities with aggregated annual turnover under $50 million and that employ workers are eligible.

An additional payment is also expected to be made from 28 July 2020. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments received.

This measure is estimated to cost $31.9 billion over the forward estimates period, including the value of the measure around the first package.

In addition, the Federal Government will establish the Coronavirus SME Guarantee Scheme, which will support small and medium enterprises (SME) to access the working capital needed to get through the impact of the coronavirus.

Under the scheme, the Federal Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs. It aims to do so by enhancing lenders’ willingness and ability to provide credit to SMES, with the scheme able to provide up to $40 billion of lending to SMEs.

It aims to complement the reduction in red tape to help SMEs get access to credit faster and the announcement made by Australian banks to support small businesses with existing loans.

Prime Minister Scott Morrison said the Federal Government was acting to cushion the blow from the coronavirus for businesses and households to help them get through to the other side of the crisis.

“We want to help businesses keep going as best they can and for as long as they can, or to pause instead of winding up their business. We want to ensure that when this crisis has passed Australian businesses can bounce back,” Morrison said.

“Our focus is on cushioning the blow and providing hope to every Australian that we will get through this and come out the other side together.

“We know this will be temporary. That’s why all our actions are geared towards building a bridge, keeping more people in work, enhancing the safety net for those that aren’t and keeping businesses alive so they can get to the other side and stand up their workforce as quickly as possible.”

Treasurer Josh Frydenberg said the $189 billion economic support package was the equivalent of 9.7 per cent of GDP.

“The Government is taking unprecedented action to strengthen the safety net available to Australians that are stood down or lose their jobs and increasing support for small businesses that do it tough over the next six months,” Frydenberg said.

“These measures build significantly on what we have already announced.

“These extraordinary times demand extraordinary measures.”

BUDGET 2019: WHAT’S IN IT FOR YOU?

This is a dream country to live in.
We have no wars. There is political stability, strong economic growth, plenty of jobs, a government with a skills and future science and technology agenda and a gradual lowering of taxes. There is money in the budget for medical and genomic research, improvements in education funding including targeting more women and girls in STEM subjects and areas of high demand. There will be an emergency fund for natural disasters, drought and flood support and tax relief for small businesses. We can all look forward to driving on safer roads with a huge infrastructure investment in both congested city as well as rural areas, complemented with immediate plans for fast trains. There is a government plan to ensure that contractors and small business are paid on time. Residential eating disorders treatment centres will be established throughout the county. There will be additional aged care packages and important life-saving medicines will be added to the PBS. The budget includes large sums to protect the environment and security funding to protect our people.
BUSINESS OWNERS
Instant write-offs increasing from $25,000 – $30,000 per asset basis for $50 turnover.Lower taxesHuge Investment in infrastructure enabling better transport of goods and services and for people to get to workCreation of more jobsAdditional training of apprentices in key occupations (80,000 new apprenticeships)$8,000 incentive payment per placement to employ apprenticesA new fund with access to financeExport Market Development GrantsCuts to R & D (Research and Development) tax incentivesSME (small & medium enterprises) tax cuts to 25% over 4 yearsMinimization of bracket creep from 2924Greater superannuation flexibility for retirees
PERSONAL
Immediate Income tax cuts up to $1,080 per personFuture tax reductionsSuperannuation changesEnergy support for those on income support $75 per personNo pension increasesNo increase for those on unemployment benefitsAdditional home care packages for aged careFunds to improve travel times within cities$2,000 incentive payment to new apprentices upon employment.

Australian manufacturing’s ongoing industrial evolution focus for NMW

National Manufacturing Week (NMW), held at the Melbourne Convention and Exhibition Centre from May 14-17, will highlight the continuous growth and change the industry is experiencing.

NMW will feature a theme of ‘Industrial Evolution’ throughout the four days of the conference program and exhibition with a specific focus on driving further innovation in local manufacturing, continuing the evolution of the industry advanced technology solutions, sharing insights to stay ahead of the game, while celebrating Australian manufacturing’s resurgence.

NMW exhibition director Robby Clark said this year’s event promises to support the continuing high-tech and highly integrated evolution of the industry.

“There’s been a resurgence of late in Australian manufacturing, which is being generated by the industry’s collective realisation, active progression and evolution to being technologically advanced, highly integrated, automation and high-level engineering.

“Equally, we’ve also seen Industry 4.0 or the Internet of Things become a reality from technological forecast, which for manufacturing has manifested in operations – for example in smart factories where sensors are providing actionable intelligence or underpinning greater automation.

“Knowledge gathering and solution sourcing are critical steps for manufacturing professionals looking to navigate this industrial evolution that is currently underway. The exhibitors for this year’s event will provide manufacturers with the latest range of products and solutions designed to improve operations and operational performance, increase efficiency and resolve challenges, while the content within the conference program will offer specific advice and visibility into how industry leaders are managing change,” said Clark.

At National Manufacturing Week 2019, the exhibition floor will feature more than 200 leading industrial suppliers of game-changing solutions, new technology, advanced manufacturing products and operational services.

Visitors will be able to take advantage of six designated product zones to navigate through the exhibition floor, which segment the extensive range of products and solutions into key operational categories. The six product zones for 2019’s event are automation and robotics, engineering, Industrial Internet of Things, safety, welding technology, and manufacturing solutions.

Key exhibitors across these six product zones include:

Automation and Robotics – Pilz, Universal Robots, Wago; Engineering – Faro, Prytec, BE;

Manufacturing Solutions – Flow Power, Combilift, Intelli Particle;

Industrial Internet of Things – Epicor, ECi Solutions, Cadgroup; Safety – Vanguard Wireless, Atom, Axelent;

Welding Technology – BOC, Lincoln Electric and Supagas.

There will also be an extensive conference programme that will feature a line-up of more than 70 industry speakers and panellists, who will share their exclusive insights about current industry challenges and recommendations for operational success. With the program’s sessions segmented across two streams, each with their own dedicated theatre, of “Industry 4.0” and “Connected Manufacturing”.

“This year’s conference program will be our most extensive and in-depth to date, with delegates offered unprecedented access to industry leaders with the expertise, knowledge and understanding to develop the strategies and practices for generating further growth,” said Clark.

Must-see theatre programs

The Industry 4.0 Theatre program will offer attendees the latest opinions, developments and research about the impact of Industry 4.0 on businesses and operations. A key highlight of this program will be the opening keynote, which will be delivered by Australia’s chief scientist, Dr Alan Finkel, followed by an innovation and collaboration stories series run by the Advanced Manufacturing Growth Centre (AMGC).

Across days 2-4 of this stream’s conference sessions, other noteworthy speakers include Swinburne University director of Factory of the Future Dr Nico Adams, CSIRO Data61 principal research consultant Dr Elliot Duff, Innovative Manufacturing CRC CEO David Chuter, Siemens head of digital enterprise Christopher Vains, and AMCG managing director Dr Jens Goennemann.

The Connected Manufacturing Theatre program offers expert advice about business management, design and industrial challenges.

Conference sessions within this stream will focus on industry topics, including environment and energy policies, process improvement and optimisation, safety innovation, safety policies, safety management and culture, mental health and well-being, marketing and sales, additive manufacturing and design, and government grants and tariffs.

Industry leaders who will feature in some of these sessions, include Efic Business Development Director Philip Smith, Australian Packaging Covenant Organisation CEO Brooke Donnelly, and Fonterra Cooperative Group HR Systems Owner Toni Kennington.

Clark said this year is NMW’s most extensive program ever, in both speaker volume and industry experience. “We are really looking forward to seeing the best game-changing, innovative and high-tech solutions that our industry-leading exhibitors are planning to demonstrate and display.”

Industry support is key

Strategic partners and industry associations supporting NMW in 2019 include Weld Australia, AMGC, Innovative Manufacturing CRC and Engineers Australia. These respective partnerships strengthen NMW’s depth and relevance of insight sharing and cement the event’s status as a key hub for the manufacturing community to come together.

As a strategic partner of this year’s event, Weld Australia will have an interactive presence on the exhibition floor offering visitors deeper insight into the latest welding skills training available. Weld Australia marketing and communications manager Donna South said Weld Australia will have an advanced welder training hub on the exhibition floor. “[This] will showcase the augmented and virtual reality technology that is revolutionising welder training here in Australia, and around the world.

“Attendees will have the chance to see and try a range of different welding simulators, which are making welder training and upskilling safer, more cost-efficient and engaging for new and experienced welders,” said South.

Improving business by understanding challenges

With NMW featuring a variety of Industry 4.0 applications that are helping lead the way for a strong future for the manufacturing industry, Clark said implementing smart solutions is a must.

“Manufacturing is no different from any other industry, in terms of needing to understand the change and challenges ahead, develop strategies and acquire the knowledge or capabilities to manage these changes or evolutions, while ensuring their customer service and productivity are not detrimentally impacted during this management of change.

“IoT is understandably forcing rapid change across the industry from operational practices and execution, to higher integration, reconsideration of approaches to production or task completion and the requirement to plan for future change, which are typified by the increasing level of ‘smart factories’ or factories with smart solutions.

“Therefore, we know businesses within the industry are actively considering and working to improve their operational practices and refine their approach or strategy for continued success. Because improving a business isn’t a process where ticking a box or achieving that next milestone is the measurement of success.”

To stay ahead of the game, Clark said manufacturers should acquire the latest insights, and collaborate and engage with industry peers.

“Whether your objective is to improve efficiency, productivity or increase quality, it’s crucial to take advantage of opportunities like NMW that support your business in its pursuit of future growth, by providing a forum to engage with industry leading solutions and operational experts.” said Clark.

Registration is now open for the 20th edition of National Manufacturing Week (14-17 May 2019), with free registration available at: www.nationalmanufacturingweek.com.au.

STRONG DEMAND DRIVES RECORD PRODUCTION YEAR

The boom in public infrastructure projects, particularly in Melbourne, has contributed to a record production year for the concrete, cement and aggregates industries.

More than 30 million cubic metres of pre-mixed concrete were produced across Australia in the 2017 calendar year, according to a survey commissioned by Cement Concrete and Aggregates Australia.

The boom in public infrastructure projects, particularly on the east coast, and continuing strong demand for high rise residential buildings, have driven a record production year for the concrete, cement and aggregates industries.

The sector has experienced steady growth in the past few years. In the report commissioned from the industry research and forecasting company Macromonitor, the 2017 results eclipsed the 27 million cubic metres produced in 2015 and the 28.5 million cubic metres in 2016.

“In essence, all of that material is provided from Australian quarries,” said Ken Slattery, chief executive of the CCAA. “There’s no significant imports of quarrying materials here in Australia.”

More than 30,000 people are employed directly by the industry, with another 80,000 estimated to be employed in work related to the industry, according to the CCAA.

“About 12,000 to 13,000 people are directly employed in quarrying and you can extend that out at a similar sort of ratio of 4:1 to get the indirect figure,” Slattery said.

The industry contributes over $15 billion to the national economy every year.

“The boom in infrastructure projects, such as WestConnex and NorthConnex in Sydney and the West Gate Tunnel in Melbourne, is good news for the heavy construction materials industry and for the more than 110,000 Australians who are employed directly or indirectly in the sector,” said Slattery.

Steady growth, supply

Future growth is projected on the back of planned projects, again driven by government-funded infrastructure projects on the eastern seaboard.

A recent report by consulting firm Deloitte concluded that infrastructure projects worth at least $324 billion were in the pipeline, an increase of almost $50 billion over the past two years.

Slattery said the building of the new Western Sydney Airport at Badgery’s Creek alone was expected to further lift demand for concrete and related products by at least another one per cent over the next five years.

The Melbourne Metro Rail Project, which is currently under construction, would also result in demand for concrete increasing by another two per cent, he added.

Slattery expects that Australian quarries will be able to continuing meeting demand. “That’s the big issue around all of this. Sydney and Melbourne have some particular challenges around how long it can take quarries to get approval.

“We’re not anticipating any shortages, provided governments’ approval processes are responsive to keeping up with demand,” he said.

The Victorian Government released a supply and demand study in 2016 that considered the state’s challenges to 2050. The Victorian Earth Resources Regulator has also subsequently launched a streamlined regulatory process for the management of basic operational changes, sparing producers the time and paperwork of having to prepare work plan variations. As of October, the regulator had received 16 requests under the new, fast-tracked process.

New South Wales has also engaged in recent studies considering the availability of resources for the burgeoning Sydney market. Infrastructure NSW commissioned a study from BIS Oxford Economics which recommended construction materials strategies for developing new sources of supply and the simplification of approval processes for quarries.

The NSW Department of Planning and Environment has also collaborated with consultants RW Corkery and Ecoroc on a study examining the supply constraints across NSW and projections about the quantities and quality of aggregate that will be required up to 2036.

Australia’s mining and engineering sector on show at QME 2018

Queensland Mining and Engineering Exhibition (QME) 2018 saw more than 4,000 attendees visiting the event to explore the latest strategies and technologies driving productivity, profitability and protection of the industry.

More than 230 exhibitors attended this year’s event, an impressive 41 per cent increase on QME 2016. Industry heavyweights included Downer Group, Flender, Flexco, FLSmidth, Puma Energy, SMW Group, thyssenkrupp and Valley Longwall International.

Representation from key mining companies Adani, Anglo American, BHP, Glencore and Yancoal reaffirmed QME as a must-attend event for the Queensland mining industry. Collaboration was an underlying theme in the QME Seminar series sponsored by March IT.

With Australia’s mining equipment, technology and services (METS) sector contributing $86 billion to the Australian economy and supporting half-a-million jobs, QME 2018 also welcomed Australian Government representatives, Senator Michaelia Cash (Minister for Jobs and Innovation), Senator Matt Canavan (Minister for Resources and Northern Australia) and Mr George Christensen MP (member for Dawson).

Brandon Ward, director of QME 2018, said the success of this year’s exhibition reaffirmed the strength of the industry and its continued importance to the Queensland economy, with initial reports indicating a multi-million-dollar boost to the region during QME.

“With the sector playing such a significant role in the nation’s prosperity, it’s important that leading companies, decision makers, and personnel in mining and engineering have a major calendar event to come together to network and source the latest products and services,” said Ward.

“We would like to thank our supporters and all of the attendees, exhibitors, and speakers who chose QME 2018 to be that event, and Mackay to be that location.”

Ian Macfarlane, chief executive of supporting partner Queensland Resources Council (QRC), said the popularity of QME 2018 represented tremendous opportunity for businesses in the region.

“QME has been a fixture in Mackay for the last 25 years and remains the most important trade show for the region’s mining industry. It is truly a festival of innovation – brimming with ideas, energy and pavilions of all the latest products,” said Macfarlane.

“The exhibition provided a great opportunity for industry to come face-to-face with the best innovators the country, and find new opportunities that will safeguard the industry for generations to come in Australia.”

QRC figures show that last financial year, minerals and energy companies injected almost $14 billion into Mackay and Fitzroy regional economies. A survey of QRC’s chief executive officers (CEOs) showed that more than half were looking to increase their spending with local businesses this year.

QME also played host to the 2018 Queensland Mining Awards, celebrating the spirit of innovation, excellence and collaboration that is fostered within the highly competitive industry. QME sponsored this year’s Best Product Launch Award, won by Control Systems Technology for its IntelliRoll an autonomous ‘plug-and-play’ conveyor belt weigher.

QME will return to Mackay in July 2020 but the next major event for engineers, mining personnel, production managers and other professionals in mining and engineering will be the Asia-Pacific International Mining Exhibition (AIMEX) set to be held August 2019 in Sydney.

Australian Government representatives to meet with industry at QME 2018

The Queensland Mining and Engineering Exhibition (QME) 2018 has today announced the attendance of Michaelia Cash, Minister for Jobs and Innovation, Matt Canavan, Minister for Resources and Northern Australia and George Christensen MP, member for Dawson, reaffirming the importance of the sector to the Australian economy.

The Australian Government representatives will join engineers and mining personnel, production managers, and some of the industry’s largest corporations in Mackay from July 24–26 for Queensland’s largest mining and engineering exhibition, which will explore the theme, ‘Productivity, Profitability and Protection’.

According to the Mining in Australia 2018–2032 Report, mining production is likely to grow 5.5 per cent in the current financial year, with maintenance spending also on the rise and the investment decline winding down. To foster the industry growth trajectory, QME 2018 will bring together key industry players to improve collaboration, accelerate innovation and address future barriers.

“Since the doors opened 25 years ago to the very first QME, the event has built a longstanding reputation for bringing the best in Australian mining together, to collaborate and consider the industry’s domestic and international outlook,” said Brandon Ward, director of QME 2018.

“The event will also provide the Mackay region with national and international exposure and bolster its reputation as a mining hub, whilst providing visitors an opportunity to enjoy its diverse and vibrant community.”

This year’s exhibition will host more than 230 companies (an impressive 41 per cent increase from QME 2016) including global industry heavyweights Downer Group, Flender, Flexco, FLSmidth, Puma Energy, SMW Group, thyssenkrupp and Valley Longwall International.

Running alongside the exhibition will be a seminar series featuring more than 30 speakers across three days, providing visitors with exclusive access to the latest industry technologies and insights via keynote presentations, panel discussions and case study presentations. The seminar series will focus on six key areas including maintenance, automation and Internet of Things (IoT), procurement and supply chain, renewable energy, transport, and operational health and safety (OH&S).

QME 2018 will feature a Business Matching Program which offers visitors a personalised itinerary of products and companies matched to their areas of interest, to maximise their time on-site.

The industries set to fly and fall in 2018-19

As Australian businesses enter the new financial year, industry analysts at IBISWorld reveal which industries are set to have a bumper 2018-19, and which are likely to struggle.

“The standout performer is expected to be intellectual property leasing, with expected revenue growth of 68.2%. Other strong performers include internet publishing and broadcasting; retail property operators; pig farming; and childcare services,” said Jason Aravanis, IBISWorld senior industry analyst.

“Industries expected to decline over the next 12 months, reflecting the changing landscape of the Australian economy, include multi-unit apartment and townhouse construction; building societies; video game, DVD and recorded music retailing; house construction; and iron ore mining. These contractions are in response to changing commodity prices, consumer behaviour, and investor sentiment,” said Aravanis.

Industries set to fly in 2018-19

Industry	Revenue 2017-18 ($m)	Revenue 2018-19 ($m)	Revenue growth 2018-19
Intellectual property leasing	2,826	4,752	68.2%
Internet publishing and broadcasting	2,486	2,896	16.5%
Retail property operators	22,830	26,590	16.5%
Pig farming	1,110	1,262	13.7%
Childcare services	12,205	13,075	7.2%

Intellectual property leasing

Operators in the intellectual property leasing industry lease intellectual property — such as patents, trademarks, spectrum and other intangible property — to businesses in exchange for royalties or licensing fees.

The auction of new spectrum capacity in the industry is expected to lead to significant revenue growth in 2018-19. A spectrum auction is a process whereby a government uses an auction to sell the rights (licences) to transmit signals over specific bands of the electromagnetic spectrum, and to assign scarce spectrum resources. This process plays a vital role in the Australian economy, as the government sells spectrum rights to companies, which then provide consumers with access to services such as mobile networks.

Revenue for this industry has been extremely volatile over the past five years. These extreme fluctuations have been attributable to the auction of spectrum rights by the federal government, which occurs on an irregular basis and depends on the development of new spectrum. Large telecommunication companies, such as Telstra, Optus, Vodafone and TPG, are the main bidders for Australia’s spectrum. For example, TPG purchased spectrum rights for $1.26 billion in the April 2017 auction, in a move to build its own mobile network and ultimately shake up the Australian telecommunications sector. This auction led to industry revenue skyrocketing in 2016-17, followed by a steep fall in 2017-18. A spectrum auction for the 3.6 GHz band is expected to take place in 2018-19, which may re-allocate the 3.6 GHz band for 5G. As a result, industry revenue is expected to increase by a substantial 68.2% in 2018-19.

Internet publishing and broadcasting

The rapid expansion of on-demand video and music streaming services such as Netflix and Spotify is expected to cause the internet publishing and broadcasting industry to grow by 16.5% in 2018-19, to $2.9 billion. This growth is off the back of the continued strong performance of online advertisers, as customers have transitioned to digital services and away from print media.

Rising internet access, particularly in rural areas, and improvements in technology have driven the increasing demand for on-demand streaming services. Services are now being watched on more devices. The ability to handle higher data usage through the continued rollout of the NBN is also expected to contribute to industry growth.

The number of enterprises in this industry has increased over the past five years due to low entry barriers for internet-based businesses. Major players that offer content across multiple channels, such as smartphone apps, are likely to outperform industry growth.

Retail property operators in Australia

Revenue for the retail property operators industry is expected to increase by 16.5% in 2018-19, to $26.6 billion. Demand from retail trade is anticipated to grow in 2018-19, fuelling demand for industry services.

Growing demand from overseas investors has also contributed to the industry’s revenue expansion over the past five years. Demand from overseas investors has largely been due to improved vacancy rates over the period, and growth in Australian property prices, both commercial and residential.

Despite the industry’s strong growth, operators have continued to face pressures caused by fluctuating consumer sentiment, which can affect retail sales and business confidence. While improvements to underlying retail drivers may prompt more spending, an increasing proportion of consumers choosing to shop online may somewhat mitigate the positive effects of these drivers on the industry.

Pig farming

The pig farming industry is expected to grow by 13.7% in 2018-19. Rising health consciousness and continued marketing efforts by Australian Pork Limited (APL) are likely to continue driving consumer demand towards fresh pork. As a result, pig meat consumption is expected to continue growing in 2018-19, as consumers increasingly view fresh pork as a healthy source of protein.

With weight and wellness concerning more Australians each year, consumers are being turned away from traditional red meats like lamb and beef towards leaner sources of protein like fresh pork. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) expects beef, veal and lamb consumption to fall in 2018-19.

Operators in the pig farming industry are anticipated to increase production in 2018-19 to take advantage of this rising demand, while growing demand for premium fresh pork products is likely to boost the domestic price of pig meat. IBISWorld also expects that pig meat exports will grow while import volumes will decline in 2018-19, providing a further boost to Australian domestic pig farmers.

Childcare services

The childcare services industry has benefited over the past five years from rising maternal workforce participation rates and increasing enrolment rates. Both of these factors have been encouraged by increased government assistance packages designed to encourage woman to return to the workforce following the birth of their children.

The industry’s operating conditions are set to change again in 2018-19, with the introduction of the new single Child Care Subsidy (CCS) on 2 July 2018. In contrast to the previous child care assistance package, this new subsidy is to be paid directly to child care operators. The federal government is expected to pay out $8.0 billion in CCS payments in the first year of the policy. This is expected to contribute to the industry’s anticipated growth of 7.2% in 2018-19, to $13.1 billion.

Industries set to fall in 2018-19

Industry	Revenue 2017-18 ($m)	Revenue 2018-19 ($m)	Revenue growth 2018-19
Multi-unit apartment and townhouse construction	25,617	21,173	-17.3%
Building societies	509	436	-14.4%
Video game, DVD and recorded music retailing	1,006	927	-7.9%
House construction	44,683	41,823	-6.4%
Iron ore mining	62,994	59,494	-5.6%

Multi-unit apartment and townhouse construction

The multi-unit apartment and townhouse construction industry is expected to face deteriorating demand in 2018-19, as investors respond to the build-up of unsold stock by deferring projects. The recent completion of major apartment developments has contributed to excess supply in several capital cities, notably Melbourne and Brisbane, which is likely to dampen investment until vacancy rates gradually ease.

The scaling back of investment is also expected to coincide with weaker investment from Asia in the local real estate market, which is due to the tightening of mortgage lending practices to foreign residents by the local banks, and the imposition of additional land taxes on foreign investors. Although work done on multi-unit apartments and townhouses is expected to decline, the industry is declining from historically high levels and many of the construction contractors will look to ride out the cyclical contraction. Industry revenue is expected to contract by 17.3% in 2018-19, to $21.2 billion.

Building societies

The building societies industry has declined significantly over the past five years on the back of prominent exits and a falling cash rate. Intense competition from national banks, and low-interest rates, have placed significant pressure on the industry. Interest revenue generated by building societies on their loan books has fallen on the back of the lower cash rate, despite greater demand for mortgages.

The lack of access to further capital has been a key factor that has led to the conversion of several former operators to banks. In 2012-13, nine building societies were registered in Australia. Only three building societies remain in the current year, with the most recent exit being B&E Ltd’s conversion to a bank in October 2017. As a result, revenue from building societies is expected to decrease by 14.4% in 2018-19, to $436.3 million.

Video game, DVD and recorded music retailing

The video game, DVD and recorded music retailing industry is expected to decline by 7.9% in 2018-19. Changing media formats and the increasing popularity of online shopping are making trading difficult for retailers of products that can be accessed online. Intensifying competition from digital media formats and online-only retailers has significantly contributed to industry revenue declining over the past five years.

The industry’s largest product segment is video games. Although the uptake of video games has been strong over the past decade, the increasing sophistication of online-only stores and the advent of faster and cheaper internet connections have caused a significant portion of video game sales to occur online through platforms such as Steam.

A similar trend is occurring for films, television shows and recorded music, with online streaming through providers like Netflix and Spotify becoming the dominant mode of content delivery. These trends are cementing the industry’s decline.

House construction

The house construction industry’s revenue is expected to trend downward in 2018-19, corresponding with the anticipated rise in mortgage interest rates and some deterioration in mortgage affordability. The magnitude of the cyclical correction in demand from the house construction industry is expected to be much smaller than the slump in the aligned multi-unit apartment and townhouse construction industry, which is exposed to substantial unsold stock levels and the exit of foreign investment.

The decline in new housing investment is likely to be most evident in the first-home buyers category, as the recent increases in housing prices and the rise in mortgage repayments are likely to prevent more households from becoming home owners. The house construction industry is anticipated to decline, although continued solid population growth is expected to ensure solid underlying demand for new housing. Overall, industry revenue is forecast to decline by 6.4% in 2018-19, to $41.8 billion.

Iron ore mining

Although revenue generated by the iron ore mining industry is expected to decline 5.6% in 2018-19, this decline is from a relatively high level, and is across an industry that has expanded output dramatically over the past decade. A lower average world iron ore price in 2018-19 is expected to be the main contributor to the industry’s revenue fall. As domestic and global iron ore production volumes continue to increase, iron ore prices are expected to weaken due to oversupply.

The industry relies heavily on Chinese demand, with China anticipated to account for more than 80% of Australia’s iron ore exports in 2018-19. Slower GDP growth in China will likely hinder demand for steel, and hence iron ore. Furthermore, a stronger Australian dollar against the US dollar will reduce the competitiveness of Australia’s iron ore exports. However, as local iron ore quality is very high, and as per-unit iron ore mining costs in Australia are very low globally, the industry will remain competitive in 2018-19 and over the next five years.

Report highlights role of advanced manufacturing, services for export

The Department of Industry, Innovation and Science’s Office of the Chief Economist yesterday released the Industry Insights — Globalising Australia report, showing that future growth opportunities will come from Australia’s manufacturing industry moving towards higher-value processes like research and development, and product design and marketing.

The report shows that as production processes become increasingly interconnected globally, Australian firms must move towards these higher value activities and capitalise on new market opportunities to remain competitive.

The report also reveals that Australia’s professional and finance industry services, often embedded in the commodities and advanced manufacturing exports, make up almost half the value of all Australian exports.

This, according to the report, is because conventional statistics often understate the economic contribution of services like value chain logistics and coordination, accounting advice to exporters or other business services.

Increasing demand for these services from China and elsewhere in Asia is likely to present significant growth opportunities and high-skilled jobs into the future.

Acting Chief Economist David Turvey said the report confirmed the importance of supporting industry transition, removing trade barriers, and encouraging innovation to ensuring Australia’s place in the global trade environment.

“Australia is an outlier amongst developed nations when it comes to global trade, mainly supplying raw materials with limited participation in the production of final goods,” Turvey said.

“This is partly due to geography. Australia is on the periphery of trading blocs, while an economy like Taiwan is in the middle of a manufacturing hub surrounded by China, Japan and Korea. But it also reflects our competitive advantages and resource endowments,” he said.

Turvey said the report shows the Australian economy is adapting to global trade patterns.

“Australian manufacturing is restructuring to focus on the high value-add processes like R&D, design and marketing, while lower value-add production activities are offshored to lower wage countries.

“In addition, the conventional trade statistics understate the importance of services to Australian exports. The statistics show that products exported across Australia’s border are mostly commodities like iron ore or manufacturing products. Yet services make up nearly half of value added in all Australian exports. Put another way, the contributions of Australia’s highly-skilled professional services and finance industries are embedded in the lumps of rock that we export,” Turvey said.

The next edition of Industry Insights, a three-part publication by the Office of the Chief Economist in the Department of Industry, Innovation and Science, will examine how Australia can capitalise on new technologies to improve productivity into the future.

Six government grants for businesses that you might not know about

For business owners and entrepreneurs, grants and investment from the Australian government can be a godsend, and popular local grants such as the Entrepreneurs’ Programme and CSIRO’s KickStart are likely already familiar to company founders.

But beyond the five most common startup grants exists a world of grant programs, with millions on offer for companies working in narrow fields or those working on building a better future for all Australians.

While not every SME and startup founder can apply for these grants, the federal government has a significant amount of capital ready to provide to those who fit the bill, with some grants even reaching into the multiple millions. If you’re looking to start a company, knowing these grants are potentially available to you could influence how you set yourself up.

Continuing on from our popular list of the top five government grants for Australian startups, here are six grants or programs you might not have heard of.

1. The Advancing Renewables Program

As the name suggests, this grant is open to any business or startup looking to help develop renewable energy technologies, be that reducing the cost of renewables, improving commercial viability of renewables, or increasing skills and knowledge in relation to renewables.

Australian incorporated companies can receive matched funding of between $100,000 and $50 million per project through the Australian Renewable Energy Agency (ARENA).

Companies can apply for the grant here.

2. Business Development and Assistance Program

The Business Development and Assistance Program is run by the government’s Indigenous Business Australia (IBA) program and is targeted at Australian SMEs or startups owned or operated by Australians of indigenous descent.

If you are over 18 and of Aboriginal and/or Torres Strait Islander descent and you own at least 50% of a solvent business, or you are not of indigenous descent but at least 50% of your business is owned by people of indigenous descent, you are eligible for the program.

Through the program, the IBA provides indigenous business owners with training, advice, workshops, and finance to help them grow their businesses.

Loans from $10,000 are available to eligible businesses, and the IBA also offers a specialised Start-Up Finance Package where 30% of the loan is awarded as a grant. To be eligible for that package, your business has to have been trading for less than one year and have less than $400,000 in annual revenue.

Apply for this program here.

3. Space Concession

While not strictly a grant, the Space Concession is a moderately new program for startups and small businesses focused on bolstering the competitiveness of Australia’s space industry.

Businesses with an authorised space project that have activities with international parties, and which also complete an Australian Industry Participation Plan, can be rewarded with a duty-free tariff concession to import eligible goods.

This means businesses operating in areas such as space exploration, remote sensing, satellite navigation systems, or space medicine and biology can access a significant tax write-off for importing eligible space-related goods.

Find more information about the concession here.

4. Automotive Transformation Scheme

A long-running program, the Automotive Transformation Scheme (ATS) was designed by the federal government to encourage further investment in the Australian automotive industry in the wake of numerous manufacturers moving their plants offshore.

Businesses that operate across the spectrum of all things automotive are eligible to apply for the scheme, which is available to motor vehicle producers, component producers, automotive tool producers, or automotive service providers.

What is available to businesses under one or more of those eligibility requirements varies, but businesses can receive payments to cover up to 15% of the cost of investing in plant and equipment, and up to 50% of R&D investment. Overall assistance is capped at $1 billion from 2016 to 2020.

The majority of assistance (55%) is directed at motor vehicle producers, but check out the various eligibility requirements here.

5. Industry Capability Network

The Industry Capability Network runs across all Australian states and territories and in New Zealand, acting as a way for businesses to connect with other suppliers, project managers and business opportunities across the two countries.

While the network doesn’t provide businesses with a direct line to funding, the eligibility requirements are simple: you just need to be a business in either Australia or New Zealand.

The ICN Gateway on the organisation’s website connects businesses to projects and says it has billions of dollars in projects listed. Over $30 billion worth of contracts have been completed since the program started 30 years ago.

6. Indigenous Advancement Strategy

Finally, registered Australian businesses with a capacity to enter a project agreement with the Commonwealth can find themselves eligible for the government’s Indigenous Advancement Strategy (IAS).

The funding, which was implemented in the 2015-16 budget and runs until next year, aims to encourage Australian businesses to commence projects that promote equal opportunities for indigenous Australians.

This revolves around improving the opportunities for indigenous Australians in the areas of jobs, schooling, safety, and culture.

The government has committed $4.8 billion to the IAS for the four years of its operation, which is being dished out in the form of grants to eligible businesses.

For more information, and to submit a proposal, go here.

Top five government grants for startups

The government support offered to startups across Australia is the envy of many entrepreneurs around the world, but these grants can be a tough nut to crack.

The lengthy applications, process times and chance of rejection are enough to put most off, but for those who win it can be a game changer for their venture.

Here are five grants for the startup sector that may be well worth your time.

1. Entrepreneurs’ Programme

The Entrepreneurs’ Programme, which replaced Commercialisation Australia and the Innovation and Investment Fund in 2014, aims to help businesses increase productivity and competitiveness with funding and access to a national network of private sector advisers and facilitators.

The programme offers entrepreneurs grants through the Accelerating Commercialisation fund and Business Growth Grants.

Accelerating Commercialisation Grants offer ventures up to 50% of expenditure on a project, which is capped at $250,000 for commercialisation offices and eligible partner entities, and $1 million for other applicants.

Entrepreneurs can also apply to get free expert advice on their ventures to address knowledge gaps and accelerate growth via Innovation Connections.

Additionally, the Entrepreneurs’ Programme offers funding support for incubatorshelping startups enter global markets.

New and existing incubators can apply for grants equalling 50% of the project value capped at $500,000, and entrepreneur or expert-in-residence projects can gain up to $25,000.

Applications are ongoing. To apply now, click here.

2. CSIRO Kick-Start

Startups and SMEs keen to partner with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) in research activities can get up to $50,000 in matched funding to help them further develop and grow their business.

Kick-Start is a relatively new initiative, which started in early 2017. It aims to further drive Australia’s innovation output by supporting local startups “on their way to becoming Australian success stories”. Aimed at the research and testing stage of companies, the grant is for companies researching a new idea, or testing or developing a “novel” product or service.

To be eligible, companies have to be registered in Australia for GST, have an annual turnover of $1.5 million or less in the current and past two previous financial years, and have been registered as a company for less than three years.

If you meet those eligibility criteria, you could receive between $10,000 and $50,000 in matched funding. The funding can then be used to cover the costs of undertaking the project — such as salaries for researchers or travel and accommodation — but it may not be used for capital works, expenditure, or infrastructure costs.

3. Biomedical Translation Fund (BTF)

If you’re a startup operating in the space of health and wellbeing, there’s a chance you could go one better than a grant and instead receive a line of venture capital straight from the government.

The Biomedical Translation Fund (BTF) was established by the federal government as part of the National Innovation and Science Agenda in December 2016, and was fuelled with $250 million of Commonwealth capital and an additional $250 million of private sector capital. Currently, the fund is managed by three fund managers, including one from startup VC fund OneVentures.

So far, 10 investments have been made through the BTF, including a $7.5 million investment in medtech startup Global Kinetics in April this year. The largest, and most recent, investment was $22 million in Certa Therapeutics on June 5.

To be eligible, your company must be “developing and commercialising biomedical discoveries” and have the majority of your employees and assets in Australia, along with a revenue of less than $25 million over the past two financial years.

‘Biomedical discoveries’ are classified as “therapeutic, medical or pharmaceutical products, processes, services (including digital health services), technologies or procedures that represent the application and commercialisation of the outcomes of research that serve to improve health and wellbeing”.

Alternative, traditional, or complementary medicine developments are not supported. Startups are also not guaranteed an investment just for meeting the criteria, with the investments made at the discretion of the fund managers.

4. Export Market Development Grant (EMDG)

The EMDG has been set up for aspiring and current exporters across a wide range of industries and products to help drive new outbound markets from Australia and encourage inbound tourism.

For businesses that have spent $15,000 or more on export promotion, they can be reimbursed up to 50% of costs exceeding $5000.

To be eligible, businesses must have promoted either the export of goods and services, inbound tourism, export of IP and “know-how” or Australian events and conferences.

Eligible businesses will have an income under $50 million in the grant year.

Applications lodged by approved consultants are open till midnight, 28 February 2017 and self-lodged applications close on 30 November 2016.

To apply now click here.

5. Research and Development Tax Incentive

The R&D tax incentive aims to help all businesses stay ahead of the curve through a tax offset that encourages innovation in even the smallest ventures.

From July 1 2016, companies with an annual turnover under $20 million can claim a 43.5% refundable tax offset against R&D expenditure that amounts to $100 million or less.

All other eligible companies can claim a 38.5% non-refundable tax offset.

Non-refundable offset amounts that go unused can be carried on to future income years.

For R&D expenditure under $20,000, companies can only make a claim if it was undertaken with a research service provider or co-operative research centre.

Applications are ongoing but companies must register for R&D activities within 10 months of their income year first.

To apply now click here.

Other programs to help your startup grow.

While not necessarily grants, there are a number of other programs ran by the government that can provide incentives, financial or otherwise, that can help young companies get off the ground.

We’ve listed a couple below.

Venture Capital Limited Partnerships (VCLP)

The VCLP programme aims to draw in foreign investors to Australia and boost the local VC market with tax benefits.

To be eligible, funds must register as a VCLP under the Venture Capital Act 2002 and make high risk investments that hold for at least 12 months.

The investments must be in ventures where total assets are valued under $250 million, 50% of assets are located in Australia and 50% of employees are also located here.

Tax benefits for VCLPs include flow-through taxation treatment, exemption from capital gains tax on their share of profits made by the partnership and the ability to claim carried interest on the capital account instead of revenue.

Fund managers are encouraged to get professional tax advice before registering.

To apply now click here.

Austrade Landing Pad

This initiative aims to give Australian startups a leg-up in the global market by immersing them in one of five world-class innovation hubs.

Startups accepted into Landing Pads in Singapore, Berlin, Shanghai, Tel Aviv or San Francisco benefit from on-the-ground presence in these markets plus access to their networks, talent, mentors and investors.

To be eligible, startups must demonstrate strong vision, scalability, traction and differentiation, and explain how 90 days in a Landing Pad could help their venture.

Austrade provides workspace in an accelerator and free services but participants must fund their own travel, accommodation, living costs, visas and insurance.

Austrade does providing funding for global startups in Australia through the Export Market Development Grant.

To apply now click here.

Have you seen any other exciting government grants or support programs for our startup community? Tell us in the comments.