It is barely 2 weeks into the new year and the hands have already come out for government to dole out tax payer monies. Not for human welfare but for corporate welfare.
Australia’s entrepreneurial environment would be strengthened if the government helped promote early-stage venture capital financing to “high-potential young firms”.
Perhaps this is a Machiavellian way for the Institute of Public Accountants to keep its members busy. You see, the Institute of Public Accountants:
has a passion for small business. More than 75 per cent of our members are either servicing small business or are small businesses in their own right.
an as a rule of thumb, whenever governments meddle in business, they tend to damage much more than help. This ensures that the businesses not benefiting from government largess are kept small and vulnerable, and thus open to the services of the members of the Institute of Public Accountants.
The IPA submission says:
Young firms in uncertain technological or new knowledge environments are particularly likely to be unattractive to bank providers of debt.
But what they are proposing is in effect public equity financing, but not public as in a voluntary investment by investors in a publicly traded company. Rather a mandatory investment on behalf of all citizens in a non public not traded company.
But not satisfied with having the accountants gazump them, the Australian Private Equity and Venture Capital Association in its submission:
has called for renewed consideration of government equity co-investment programs, modelled on the government’s biomedical translation fund established in 2015.
There is no better reason for the taxes of Australians to be cut than to starve the government of the ability to engage in such nonsense.
Shut it down. Give it back.
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