MEDIA RELEASE

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ACS Welcomes Ralph Reforms

Thursday 23 September 1999 - The Australian Computer Society (ACS) has joined other industry players in welcoming the business tax reforms announced this week, predicting flow-on benefits for the IT&T industry.

ACS President Prins Ralston said the tax package would help to create a more positive climate for investment in IT&T.

"The ACS was one of several industry bodies that called for business tax reform in the lead up to the last Federal election and since then. This is an excellent result and we want to congratulate Senator Richard Alston and his departments of NOIE and DCITA, who have played a pivotal role in ensuring the industry's message was heard by the Review," he said.

"We sought a business environment that was more conducive to investment and the changes announced in the Ralph Report, particularly with regard to capital gains tax, will go a long way towards address this requirement by encouraging both Australian and international funds to invest in IT&T start-ups.

"Australia's IT&T industry has been hamstrung by the lack of venture capital for both new and growing companies. These new measures should also help to stem the flow of Australian companies moving to the US to access venture capital to fund their expansion," said Mr Ralston.

"The move to encourage pooled development funds will particularly benefit the many small and medium sized enterprises struggling to establish themselves in the IT&T industry."

Mr Ralston also welcomed a relaxation in the tax treatment of undersea telecommunications cables, which could lead to cheaper Internet access.

"Affordable Internet access will have a critical influence on the rate at which Australians utilise the 'Net and take advantage of electronic commerce. We're delighted to see this relaxation in response to our calls for cheaper access."

While this week's announcement lacked some details, particularly in the areas of accelerated depreciation and R&D tax concessions, Mr Ralston expressed the hope that both issues would be treated positively in relation to the industry's requirements.

This media release is available on the ACS Web site at http://www.acs.org.au/news/ralph.htm

ENDS

The Australian Computer Society is the recognised association for information technology (IT) professionals, attracting a large and active membership from all levels of the IT industry and providing a wide range of services to its members. It is the public voice of the IT profession, the guardian of professional ethics and standards in the IT industry, with a commitment to the wider community to ensure the beneficial use of IT. See the ACS Home Page for more information.

Media Enquiries:

Prins Ralston, ACS President, Tel: (08) 8947 4330 or (0411) 755 069, Email: prins@bmconsult.com.au

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