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Australia's Commitment To Growth
Over the past two years the Australian Government has introduced a number
of concessions for early stage companies, as part of a long term plan to promote
investment in that area in Australia.
In 2015, a new employee share plan regime was introduced to provide concessional
treatment for employees of startups, a sector that created 1.44 million jobs in our
economy between 2006 and 2011. Further, in late 2015, a National Innovation and
Science Agenda was announced. Critical to the agenda were tax incentives for
investors to encourage investment in innovative Australian startups and relaxing the
restrictions on crowd-sourced equity funding.
These changes will be of interest to Israeli investors as they are aimed at incentivizing
innovation, an area in which Israel has excelled and is considered a world leader.
Cultural Challenges
Australia is known for its friendly and open culture, where personal connections are
valued. Negotiations tend to follow a structured process similar to the approach
adopted in the United States. Negotiations of commercial transactions are usually
conducted in accordance with a timetable and an outline of key principles that parties
commit to at the outset. Contracts are generally detailed and firm.
Conclusion
Australia is a great place for Israeli companies to do business and set up a hub in
the Asia Pacific region. Despite some minor cultural differences, the Australian legal
system is straight forward and not too dissimilar from that of Israel.
Significantly, Australia has recently switched its focus from mining and resources to
innovation and technology which should provide significant opportunities for many
Israeli companies.
These changes will be of interest to Israeli investors as they are aimed at
incentivizing innovation, an area in which Israel has excelled and is considered
a world leader.