Australian businesses will receive a significant boost in support for research and development, under new R&D tax incentive legislation now before Federal Parliament.
Innovation and Industry Minister Kim Carr said the new reforms encourage more Australian companies to engage in R&D.
This would ultimately provide Australians with the high-end technologies and skills needed to compete in a competitive global market.
“This will make Australian companies more innovative, productive and prosperous and position them to create jobs for the future, said Senator Carr.
Under the new legislation, to apply next financial year (2010-11), the Government will replace the complex and outdated R&D Tax Concession with a simplified R&D Tax Credit, giving business better incentives to invest in research and development.
“The new scheme will stimulate more of Australia’s two million businesses to undertake research and development rather than just the 8000 that benefit from the current concession, Senator Carr said.
“The R&D Tax Credit doubles the incentive for small and medium enterprises – the engine room of the economy – while increasing by a third the incentive for big business to undertake R&D.”
Senator Carr said small innovative firms would be the big winners from the new R&D Tax Credit, with greater access to cash refunds for their R&D expenditure and more generous rates of assistance.
“This legislation follows an independent review of the national innovation system, and almost a year of consultation with key stakeholders,” Senator Carr said.
“The R&D Tax Credit will focus on supporting genuine R&D and be worth $1.5 billion a year to industry.”