An independent economic analysis of the Government’s new Research and Development (R&D) Tax Credit has found the scheme will assist small and medium sized firms grow and transform their business, resulting in new jobs, new investment and improved productivity.
Innovation Minister Senator Kim Carr said the Australian Business Foundation report The BERD in the Hand: Supporting Business Investment in Research and Development confirmed Australians can expect a boost in the number of high-skill, high-wage jobs to flow from the introduction of the R&D Tax Credit.
“The report looks at the merits of the Credit and confirms it is an improvement on the current R&D Tax Concession. It says the policy behind the Credit is sound and urges its immediate introduction because further delays will have a negative impact on the R&D activities of small and medium sized firms,” Senator Carr said.
“The R&D Tax Credit is a key part of the Government’s overall innovation strategy and I am pleased this report strongly endorses its higher rates of support and the changes in the definition of eligible R&D.”
The Bills to establish the Credit will be debated in the Senate later this month.