The Federal Government has called for business and public comment on how the new R&D Tax Credit scheme will be administered.
Minister for Industry and Innovation Senator Kim Carr said the R&D Tax Credit will give small and medium-sized businesses greater access to their funds for R&D, helping them create the new jobs, skills and technologies they need to thrive in a competitive and low-carbon economy.
Senator Carr said the new R&D Tax Credit was vital for Australian businesses and the national economy.
“The R&D Tax Credit will encourage a surge of improved materials, products, processes and services, leading to greater prosperity and more high-wage, high-skill jobs for Australians,” Senator Carr said.
“This is because small and medium-sized businesses – whose R&D efforts are generally constrained by cash flow — will have better access to the Tax Credit than they have had with the R&D Tax Concession.
“By making the R&D incentive more attractive to small and medium-sized businesses the Government’s tax incentives will be distributed more fairly than has been the case under the current R&D Tax Concession. This will herald a new era of innovation, design and production.”
The legislation that will enable the R&D Tax Credit contains powers to make regulations and decision making principles, to assist with administration of the new scheme.
The decision-making principles relate to the circumstances in which the Innovation Australia Board may extend deadlines, review findings about R&D activities and core technology, and vary registrations.
The Government has invited interested stakeholders to review the consultation documents and make comment.
“Public input will help ensure administration of the R&D Tax Credit runs smoothly,” said Senator Carr.
The consultation documents are available at: www.innovation.gov.au/RDTaxCreditRegulations
Submissions are due by August 5.