8 ms·

I’m dismayed that Australia isn’t doing more to foster local fabs.

icelancer 5y ago
Their massive import/export taxes on anything related to technology basically kills any of those types of ideas, unfortunately.
- mkj 5y ago
  Looks like semiconductor equipment is zero tariff? https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification/current-tariff/schedule-3/section-xvi/chapter-84#8486 https://www.abf.gov.au/importing-exporting-and-manufacturing...
- jeeeb 5y ago
  Australia has some of the lowest import / export tariffs in the world. I.E. they’re generally zero or close to.
  - icelancer 5y ago
    Tariffs, yes. Taxes, no. Simply comparing the cost of technology-based goods between AUS and USA/CAN - or worse, digital-based items - shows why Australia is not an attractive place for technology companies.
    - jeeeb 5y ago
      I don’t know of any particular taxes on technology goods in Australia. There’s 10% GST but that’s paid by consumers. For companies GST on inputs is all deductible.
    - dannyw 5y ago
      It's not taxes nor tariffs. It's the fact that we are generally an affluent country with high costs of living and wages, so the market can pay more.
sen 5y ago
We're too busy subsidising coal plants and taxing EVs, there's no way our Government would ever do something that's actually working towards a better future.
ryanmarsh 5y ago
Aussie leaders never miss an opportunity to miss an opportunity.
Proven 5y ago
Why would it?
jeeeb 5y ago
Australia is a relatively small market located far from global supply chains with relatively high energy, capital and labour costs. I think we need to be selective about which industries we promote, especially if the industry will only be viable with large government subsidies.
- shakna 5y ago
  > Australia is a relatively small market located far from global supply chains Australia is also the world's second largest exporter of rare earth metals. It does, in fact, have a considerable part of the raw materials required for fabrication already being extracted in-nation. It would not take much for Australia to insert itself into that global supply chain, as a more reliable and stable political environment than alternatives.
  - jeeeb 5y ago
    Define “not much”. The idea sounds nice but how do you execute on it? Should Australia tax or ban rare earth exports to try to force value add industries here? That would go against our position as a stable supplier and would seem more likely just to make customers source their rare earth supplies elsewhere (they’re not that rare).
    - shakna 5y ago
      > Should Australia tax or ban rare earth exports to try to force value add industries here? You're right that doing so would appear to be a hamfisted approach to creating a homegrown economy that is attractive to industry, and would likely be doomed to failure. Rather than trying to browbeat the industry into slowing exports, provide the opportunities for using the materials here, within the nation. That is done by providing a less-costly way of turning a profit. Less transportation, etc. This is done by projects that would consume those resources. Government-led infrastructure investment projects can be successful, such as the Snowy Hydro project which was delivered under-time, under-budget, and over-performing expectations. We don't need to tax or ban anything. We can invest in creating existing technologies here in Australia... Rather than investing in pipedream technologies that don't yet exist like the carbon sequestration investments that were just announced.
roenxi 5y ago
Australia is (by geography) an Asian country with easy access to China/Taiwan/Korea & Japan. It makes a more sense to let the experts to the north build fabs and for Australia to focus on things we're already good at. Like biotech. If we're going to invest to break in to new fields, it should be energy technologies (solar, nuclear, etc) and transportation technologies.
nomay 5y ago
Don't think it has that much water to support what's essentially a chemical plant.

Their massive import/export taxes on anything related to technology basically kills any of those types of ideas, unfortunately.

mkj 5y ago
Looks like semiconductor equipment is zero tariff? https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification/current-tariff/schedule-3/section-xvi/chapter-84#8486 https://www.abf.gov.au/importing-exporting-and-manufacturing...
jeeeb 5y ago
Australia has some of the lowest import / export tariffs in the world. I.E. they’re generally zero or close to.
- icelancer 5y ago
  Tariffs, yes. Taxes, no. Simply comparing the cost of technology-based goods between AUS and USA/CAN - or worse, digital-based items - shows why Australia is not an attractive place for technology companies.
  - jeeeb 5y ago
    I don’t know of any particular taxes on technology goods in Australia. There’s 10% GST but that’s paid by consumers. For companies GST on inputs is all deductible.
  - dannyw 5y ago
    It's not taxes nor tariffs. It's the fact that we are generally an affluent country with high costs of living and wages, so the market can pay more.

sen 5y ago

We're too busy subsidising coal plants and taxing EVs, there's no way our Government would ever do something that's actually working towards a better future.

ryanmarsh 5y ago

Aussie leaders never miss an opportunity to miss an opportunity.

Proven 5y ago

Why would it?

jeeeb 5y ago

Australia is a relatively small market located far from global supply chains with relatively high energy, capital and labour costs. I think we need to be selective about which industries we promote, especially if the industry will only be viable with large government subsidies.

shakna 5y ago
> Australia is a relatively small market located far from global supply chains Australia is also the world's second largest exporter of rare earth metals. It does, in fact, have a considerable part of the raw materials required for fabrication already being extracted in-nation. It would not take much for Australia to insert itself into that global supply chain, as a more reliable and stable political environment than alternatives.
- jeeeb 5y ago
  Define “not much”. The idea sounds nice but how do you execute on it? Should Australia tax or ban rare earth exports to try to force value add industries here? That would go against our position as a stable supplier and would seem more likely just to make customers source their rare earth supplies elsewhere (they’re not that rare).
  - shakna 5y ago
    > Should Australia tax or ban rare earth exports to try to force value add industries here? You're right that doing so would appear to be a hamfisted approach to creating a homegrown economy that is attractive to industry, and would likely be doomed to failure. Rather than trying to browbeat the industry into slowing exports, provide the opportunities for using the materials here, within the nation. That is done by providing a less-costly way of turning a profit. Less transportation, etc. This is done by projects that would consume those resources. Government-led infrastructure investment projects can be successful, such as the Snowy Hydro project which was delivered under-time, under-budget, and over-performing expectations. We don't need to tax or ban anything. We can invest in creating existing technologies here in Australia... Rather than investing in pipedream technologies that don't yet exist like the carbon sequestration investments that were just announced.

roenxi 5y ago

Australia is (by geography) an Asian country with easy access to China/Taiwan/Korea & Japan. It makes a more sense to let the experts to the north build fabs and for Australia to focus on things we're already good at. Like biotech. If we're going to invest to break in to new fields, it should be energy technologies (solar, nuclear, etc) and transportation technologies.

nomay 5y ago

Don't think it has that much water to support what's essentially a chemical plant.