Govt urged to revamp Infrastructure Bond program
The Federal Government needs to look to initiatives such as allowing superannuation funds to invest directly in infrastructure if it is to appropriately recalibrate the economy from a resources focus, according to BDO Tax Partner, David Blake.
Commenting on yesterday's release of the Mid-year Economic Fiscal Outlook (MYEFO), Blake said it had identified the need to re-calibrate the Australian economy from reliance on the resources boom to a more sustainable economy based on innovation and technical advances.
"However, apart from the overview provided by the innovation and science agenda announced last week — which BDO broadly supports — and an expectation that the Tax White Paper process will address the required structural changes, there's a paucity of practical detail of exactly how this will be achieved," he said.
Blake said it was in these circumstances that BDO wanted to see the Federal Government take bold initiatives to accelerate the process of structural reform.
"We welcome the recent incentives and concessions for start-ups but believe the measures should be broader and accessible to a wider range of innovative companies," he said.
"The re-introduction of a revamped Infrastructure Bond program which provided a means through which SMSF and Retail Super Funds could invest directly into substantial infrastructure, would be another measure worthy of greater analysis," Blake suggested.
He said that, currently there was little or no ability for SMSFs and Retail funds to pool funds and invest in reforming infrastructure.
"A program of Infrastructure Bonds managed by a regulator is an opportunity that should be assessed," Blake said.
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