Amendments to the taxation laws will assist the development of Australia’s information and communications technology (ICT) industry, the Minister for Communications, Information Technology and the Arts, Senator Richard Alston, and the Assistant Treasurer, Senator Rod Kemp, said today.
The amendments will apply to not-for-profit organisations established to develop ICT resources in Australia, and will exempt them from income tax and provide them with a fringe benefits tax rebate. They will apply for the 2000-01 income year onwards.
The ICT industry will join other industries currently benefiting from similar treatment, including primary industries, manufacturing, tourism and aviation.
‘ICT is one of Australia’s fastest growing and rapidly changing industries. These amendments will help not-for-profit organisations in the ICT sector continue to develop that sector’, the Ministers said.
‘The tax amendments will encourage industry-based initiatives that will develop the resources required to help Australia’s ICT industries expand further, but will be especially useful for boosting ICT training and skills development’, the Ministers said.
For example, the IT&T Skills Exchange will be exempt from paying income tax on contributions it receives from industry, which will assist the Exchange in ensuring that Australia develops the ICT skills that industry requires.
The IT&T Skills Exchange is an industry-led body which has been set up with Government assistance. Senator Alston and the Minister for Education, Training and Youth Affairs, Dr David Kemp, announced the Government offer of $5 million, subject to matching industry funding, last year.
‘This initiative builds on the Government’s $2.9 billion Innovation Action Plan, Backing Australia’s Ability, announced by the Prime Minister in January. It will help the Australian ICT sector strengthen its strong position on the world stage, and build on the innovative talent we have in this country.’
CANBERRA
29 March 2001