Up to $10,000 is available for students who want to establish a new company.
Start-Up Year Loan is a program to support Australian university students who want to start their own business by creating a HELP loan to fund a start-up year for graduates who want to participate in an accelerator program.
Labor and Opposition leader, Bill Shorten, has announced a plan for HECs-style loans to fund fledgling business ideas from Australia’s university graduates. The opposition wants to give 2000 students each year an income-contingent loan to help establish a start-up under accelerator or incubator programs to give the young entrepreneur mentoring, business skills and capital.
Labor’s announcement follows a decision by Prime Minister Malcolm Turnbull appointing former education minister Christopher Pyne as the minister for industry, innovation and science.
Start-up Year Loan will be offered to 2,000 students and new graduates each year that want to establish a startup within a university-based (or similar) accelerator.
The program is part of Labor’s Future Smart policies which also include:
- giving every child in Australia the opportunity to learn coding and computational thinking in school;
- a National Coding in Schools centre (NCIS) where business and industry can connect with teachers;
- STEM teacher training fund to support 25,000 primary and secondary school teachers over five years to undertake professional development in Science Technology Engineering and Maths (STEM) disciplines;
- offering 25,000 Teach STEM scholarships over five years, to boost qualified teachers with a $5,000 payment when they commence a teaching degree and $10,000 when they complete their first year;
- provide 100,000 HECs-free degrees for STEM undergraduates;
- a $500 million Smart Investment Fund to co-invest in early stage companies, providing a Commonwealth investment of up to 50 per cent of the start-up capital to commercialise innovations; and
- work with industry on start-up finance, a partial guarantee scheme to improve access to finance to micro-businesses.
Students would be eligible for loans of about $10,440 a year and would receive mentoring and professional development.
Students would have to pay back the loan when they start earning $54,000, as do university graduates.
The program would be available to students in their final year of study or who have recently graduated.
Labor wants to offer loans to entrepreneurial university students to help them kickstart their big ideas.
University graduates with a big idea will get the chance to pursue it under a federal Labor government.
The opposition wants to give 2000 students each year an income-contingent loan to help establish a start-up under accelerator or incubator programs to give the young entrepreneur mentoring, business skills and capital.
The $5 million plan would be open to final-year university students and new graduates and help build up Australia’s pool of innovative entrepreneurs, Labor says.
“The next sort of big dotcom start-up inventor might be right now studying at one of our universities,” Opposition Leader Bill Shorten told reporters in Sydney.
“They’ve done three years of study, they’ve got an idea which they think is an idea which might change the way our society is organised, might change the way commerce is conducted.”
Labor also wants to offer 2000 graduate entrepreneurship visas each year to keep international students who have studied at Australian universities here while they develop a business idea.