MEDIA RELEASE

---

No Long-Term Vision in ALP Tax Package, says ACS

Friday 28 August 1998 - The Australian Computer Society (ACS) has welcomed moves in the ALP Tax Package to reinstate the 150 per cent Research & Development concession, saying it has the potential to benefit both small and large IT companies.

While stopping short of either supporting or opposing the ALP tax plan, ACS President, Prins Ralston said the Labor package was yet another missed opportunity by Australia’s political leaders, who were running out of time to outline their vision for the nation's future and the role that IT would play in it.

"This was an opportunity for the ALP to show some vision for Australia’s future, but it is one they have let slide," said Mr Ralston.

"There is little in it to identify any vision Labor might have for the IT industry and the critical role it must play in our economy in the next century. This package provides no details of how our future knowledge workers will be educated or how the IT industry could be used to both reduce unemployment and improve the deficit through expanded exports."

Mr Ralston said small business, including those within the IT industry, would welcome the promise to abolish provisional tax - a sweetener that has now been promised by both sides of politics - and new incentives for foreign venture capital could see funds flow through to IT start-ups, but more could have been offered.

He said the package was short-sighted, offering little in the way of specific initiatives for business and in particular, the IT industry.

He called on both the Opposition and the Government to revisit the Goldsworthy Report and industry reports by Mortimer, Cutler and others, in seeking to develop an IT vision.

"The Goldsworthy report provided a detailed blueprint of measures designed to grow the IT industry and establish Australia as an innovator and major player in the global information age," he said.

Mr Ralston also reiterated the Society’s commitment to working with both sides of politics for the advancement of the IT industry and Australia’s long-term future.

This media release is located on the ACS Web site at www.acs.org.au/news/alptax.htm

ENDS

Media Enquiries:

Arthur Dyster, ACS CEO, Tel: (02) 9299 3666 or (0419) 610 613, Email: arthurd@acslink.net.au

Caroline New, Caroline New PR, Tel: (02) 9980 8060 or (0411) 889 456, Email: cnew@acslink.net.au