none

New R&D tax credit scheme to reward innovation

24-06-2011
by 
in 

Australian companies will become more innovative and globally competitive thanks to the new R&D tax incentive, says the Minister for Innovation and Industry, Senator Kim Carr.

Senator Carr said the Government’s $1.8 billion R&D Tax Credit would deliver more funding to innovative firms – including manufacturers, ICT and biotech – increasing productivity and Australia’s national income.

“This builds on Labor’s policy reform agenda of the past four years and will be a major benefit for businesses that innovate and use R&D as a platform for future growth, Senator Carr said.

With the support of crossbench Senators the new legislation is expected to pass through Parliament before the end of the month. The new laws will take effect from July 1.

Under the new legislation more funds will be provided for “genuine” R&D deserving of public support, Senator Carr said.

“This is good news for industry and better value for taxpayers,” he said.

It will deliver a 45 per cent refundable tax credit to companies with an aggregated turnover of less than $20 million and a 40 per cent non-refundable offset to all others.

“This will allow more firms to benefit from our massive boost to the innovation, science and research budget, helping them grasp the opportunities of our transition to a cleaner economy, said Senator Carr.

Following discussions with the Greens, the Government will introduce quarterly payments for small and medium businesses from January 1, 2014.

These firms will get their credit sooner, significantly improving their cash flow and incentive to invest in R&D.

Senator Carr said the deferral of the start date to July 1 this year had an overall impact of $40m, with a negative impact of $310m in 2011-12 and a positive impact in 2012-13 of $270m.

“The Government will continue to work in partnership with the business community to get the most from this landmark reform,” Senator Carr said.

“An advisory group will be established through the Innovation Australia Board to monitor the implementation and operation of the Credit.

“The Government, through AusIndustry, will run an extensive education program to ensure firms are kept up to date.”

Related news & editorials

  1. tank
    12.07.2021
    12.07.2021
    by      In , In
    A collaborative partnership between Lockheed Martin, Australian manufacturer Omni Tanker and the University of New South Wales (UNSW) will look to develop and commercialise world-first composite tank technologies, thanks to a grant from the Federal Government’s Advanced Manufacturing Growth Centre... Read More
  2. 3D printer
    12.07.2021
    12.07.2021
    by      In , In
    Obsolescence is an unavoidable part of any manufacturing environment. However, it’s concerning that nearly 70% of companies admit they do not know when vital equipment requires replacing, or when they do, they scramble to find replacements. Here, Claudia Jarrett, country manager at automation parts... Read More
  3. circuit breaker
    09.07.2021
    09.07.2021
    by      In , In
    Distributor Control Logic has announced the availability of the PULS PISA-B electronic protection module.
    The all-new PISA-B generation is one of the most compact protection module solutions on the market, with eight completely separated, individually adjustable channels to ensure reliable... Read More
  4. medical implements
    09.07.2021
    09.07.2021
    by      In , In
    Henkel’s California facilities dedicated to developing and manufacturing resins for 3D printing, have achieved ISO 13485:2016 certification, an international quality standard. In Henkel’s case, it covers the design and manufacturing of biocompatible resins and other materials used to produce non-... Read More
Products
Suppliers