Innovation plans usually involve the government doing two things in varying proportions: proactively "doing something" to encourage innovation, and getting out of the way.

The tax breaks in the Turnbull government's latest plan are an example of the latter, and should boost investment in start-ups. There's nothing like a tax break to attract attention and money.

Australia should be bidding to be a centre for 3D printing software development. Credit:Jessica Hromas

Tax breaks come with some downside, too, of course.

The government is handing out tax breaks when it wants to save money. Look to the mid-year budget update this month for clues about how it will balance the books.