New R&D tax credit laws ‘deeply flawed’


The Australian Industry Group has told a Senator Economics Committee Hearing in Canberra that proposed new R&D Tax credit laws are “deeply flawed.”

Mr Innes Willox, Ai Group Director of International and Government Relations, said if implemented the legislation would significantly reduce the innovation efforts of Australian industry. 

“The feedback from our members indicates very little support for the proposals in core economic growth industries such as mining, manufacturing and construction,” Mr Willox said.

Mr Willox said Australia continues to lag behind the OECD average on business expenditure on research and development. 

“Our view is that the Government's proposed R&D scheme will undermine this trend and, more likely, put the county's business R&D effort into reverse.”

Dr Peter Burn, Ai Group director of Public Policy told the committee: “We very firmly oppose the fundamentally new approach to defining business R&D expenditure that is embodied in the legislation before the Committee. 

“It is embodied in the objects clause, the changed definitions of eligible expenditure and the restrictions relating to the treatment of core and supporting expenditure.

“Our opposition has three elements: the timetable the Government has imposed; the restrictive nature of the definition of eligible business R&D expenditure and the heavy compliance requirements that we anticipate would arise from the structure of the new approach.”

Related news & editorials

  1. 09.03.2020
    by      In , In , In
    In May, Advanced Manufacturing Expo will be held for the first time to inspire future growth for the manufacturing industry and industrial sector. The expo’s conference and exhibition will showcase the latest advanced manufacturing production solutions and insights with dedicated solutions... Read More
  2. 23.08.2019
    by      In
    Swiss-based CNC specialist NUM has launched an innovative accelerometer-based active vibration control system for CNC machine tools. The system, primarily designed to improve machining by virtually eliminating tool head vibration, further helps increase productivity by maximising material removal... Read More
  3. 13.08.2019
    by      In
    Maintenance in the era of Industry 4.0 means a clear change of paradigm. ‘Predictive maintenance’ makes it possible to continuously monitor the status of a machine tool, which can reduce unscheduled shutdowns and the costs of failure. Instead of merely reacting to a failure or fault or carrying out... Read More
  4. 21.06.2019
    by      In
    Australian bicycle manufacturer Bastion Cycles produces high-performance road bikes that use filament-wound carbon fibre tubes and a modular design for titanium lugs. For the first three years of operation, Bastion outsourced production of the lugs to RAM3D, an additive manufacturing (AM) provider... Read More