Business Investment

Back in the early summer of 2009 the Australian Government predicted a large fall of up to 20% in business investment in Australian businesses moving towards 2010. However the Australian economy has bucked the predicted trend and business investment in Australia remains strong and offers both entrepreneurs and investors good opportunities moving forward over the next year.

Whilst the economic downturn has had an impact across the globe, in Australia the government created the Nation Building Economic Stimulus Plan which is a mechanism where the government helps fund projects that have long lasting benefits for the community across Australia and in turn this boosts not only the Australian infrastructure, but also supports employment within the country.

This plan seems to be working as business investment has continued and not dropped off as originally predicted. The reason for this is clear- the Australian government has offered cuts, grants and stimulus packages across certain sectors. These incentives have added a stimulus that has promoted business investment into areas that are supported by the economic plan. This business investment has not only helped grow the Australian economy, but it has also supported employment and created new jobs for the Australian labour force.

Whilst this plan is in action there are plenty of opportunities for investors to offer business investment to entrepreneurs who operate across certain sectors. For example the Australian government is carrying out maintenance upgrades to over 60,000 social houses, offering help to provide ceiling insulation for up to 2.7 million Australian homes and offering increased rebates for solar and heat pump hot water systems.

Companies that operate in these sectors are showing signs of success. Another key incentive from the Australian government is offering a 30% tax deduction for small and general businesses buying eligible assets, which is prime territory to attract investors wanting to offer business investment to these companies. The Angel Investment Network in Australia is also home to hundreds of entrepreneurs and investors looking to form business partnerships.

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