Outgoing ACS president calls for ICT tax break

Creating a tax break for ICT exports would help lift the local industry out from the "bottom of the OECD pack", an outgoing Australian Computer Society (ACS) president Edward Mandla said at the society's IT in Government conference last week.

"The Australian ICT industry faced a $14.4 billion trade deficit two years ago, which grew to 19 billion last year, and looks to be around $85 billion this year. It's growing at an extraordinary rate," Mandla said.

"In order to put us on the global market, we need to create a Technology Australia organisation, much like we have Tourism Australia. I think it needs a paid CEO and a paid chairperson. We need to unite the ICT industry with the state governments at the board level, in order to start claiming $500 million dollar chunks out of budget," he said.

Although Mandla's reign as ACS president finishes at the end of this year and a new president will be announced on November 28, he said he does not plan to give up on his campaign to advance the ICT industry.

"I now have a lot more freedom to speak my mind and not just the ACS's mind. I'm not going to rest until we get an industry policy out of our minister," he said.

Mandla said that Australia risked becoming a subservient technology nation by becoming an end-user rather than a producer of technology.

"The modern world, with its double tax treaties and FTA's is not as easy to export in as it used to be," he said.

"(I'm convinced there is) a killer idea out there somewhere. Imagine no income tax on ICT Exports, for instance. I'm not talking about a grant- because unfortunately a lot of grants are rorts. This is not an R&D write off- because only the big companies ever qualify for that. It would be a reward incentive for creating ICT Intellectual Property and flogging it to someone overseas."

Mandla said he had spoken with the Communications Minister, Helen Coonan about the idea of offering tax incentives for IT exports, while the two were in India on a Trade mission last week.

"So the government is aware of it. If we can get a document or proposal to the government by March we looking at getting something through the May 2007 budget. It will just take the right economist to come up with the killer idea," he said.

Professor Steve Dowrick, senior fellow from the economics school at the ANU said he could understand why the IT industry, or any industry, would want to be a major exporter but that it was not the role of public policy to do anything about it.

"Giving tax breaks to any industry is a very dangerous road to go down because everyone would like one," he said.

Dowrick said that in order to claim any tax breaks, the IT industry would need to make a specific case about how the scheme would make a significant impact on the broader economy.

"I'm not convinced there is a case for that. It comes down to an argument of comparative advantage," he said.

"Other countries like the US and Japan, have huge amounts of R&D that Australia just doesn't have, and could never have. So those countries have the advantage in hardware and software," he said.

Details of nominations for the ACS president will be announced in the next two weeks.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dahna McConnachie

Show Comments


James Cook University - Master of Data Science Online Course

Learn more >




Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?