Cook Medical Australia, a leader in medical technology, has called for “tangible policy changes” by the new Turnbull Government to support innovation and manufacturing in Australia.
Barry Thomas, Director of Cook Asia Pacific and Managing Director of Cook Australia, said new tax incentives for manufacturers are needed to revitalize manufacturing and stimulate the economy.
“Mr Turnbull’s new frontbench is composed of quality leaders who, have the potential to build a positive outlook for the future of advanced manufacturing,” Mr Thomas said.
“It’s time for action to support innovation and manufacturing in Australia and the jobs these industries create. We are extremely pleased to see that Mr Turnbull is putting innovation at the forefront of his agenda. Innovation is an integral element of Australia’s economy and must be a priority.”
Mr Thomas congratulated Scott Morrison on his appointment as Treasurer and Christopher Pyne on his appointment as Minister for Industry, Innovation and Science. “The new ministerial title reflects Mr Turnbull’s focus on innovation as a priority area,”
Mr Thomas said.
Mr Thomas said there had been “limited action” to support innovation and advanced manufacturing in recent times.
“We are disappointed with the consideration of a reduction of the Research & Development (R&D) Tax Incentive, he said.
“We believe this would be a measure that saw short-term savings to the detriment of the economy and jobs long term. Now is the time to bolster support of this sort and we hope Mr Morrison will scrap this change rather than support it.”
Mr Thomas challenged the new Cabinet to show strong leadership and consider long term measures to safeguard jobs and the economy.
“As a senior federal minister Mr Turnbull had said that he believed Australia should focus on high-tech advanced manufacturing, in areas where there is a high level of skill and technical knowledge.
“With this in mind, we believe Mr Turnbull and his Cabinet should consider the benefits of the Australian Innovation and Manufacturing (AIM) Incentive. This tax incentive has been designed to reward manufacturers who produce and commercialise products in Australia, which are a result of local intellectual property. The purpose of the AIM Incentive is to stem the flow of intellectual property and manufacturing offshore, resulting in more jobs in Australia.”
Mr Thomas said while the current R&D Tax Incentive is certainly beneficial for encouraging businesses to continue to improve their offerings, the AIM Incentive would build on this to help to keep manufacturing in Australia.
“We look forward to conferring with the new Cabinet on their plans for the future of innovation and manufacturing in Australia,” Mr Thomas said.