The Federal Government’s new R&D Tax Credit will help businesses in every sector of the Australian economy transform and invest in the future, says the Minister for Innovation and Industry, Senator Carr.
Senator Carr says the new scheme will pave the way for more high-wage, high-skill jobs.
The legislation, passed recently by Federal Parliament, will start retrospectively from July 1 this year.
The R&D Tax Credit is a key element of the Government’s innovation agenda, Powering Ideas, a program designed to assist Australian industry.
Senator Carr said the Credit effectively doubles the support for small firms to 15 cents in the dollar and increases support for all other firms by a third, to 10 cents in the dollar.
The two core components of the Credit are a 45 per cent refundable R&D Tax Credit for small firms with turnover of less than $20 million and a 40 per cent non-refundable R&D Tax Credit for all other firms.
“The R&D Tax Credit will act as a beacon to attract more firms, particularly small and medium firms, to undertake research and development in Australia,” Senator Carr said.
“Firms need to embrace innovation to remain competitive. Future job creation will come as companies transform and adopt new practices. Putting it simply, firms that innovate will survive and be the market leaders of tomorrow.”
The R&D Tax Credit was supported in Parliament by the Greens and all members of the crossbench in both Houses. It was opposed by the Coalition.
Senator Carr said the R&D Tax Credit would complement Clean Energy Future and build upon other initiatives like Enterprise Connect and Commercialisation Australia, to provide unprecedented levels of support for Australian innovative firms.
“By supporting Australian industry to perform research and development we are helping firms transform to be more productive and creative – securing a prosperous tomorrow,” Senator Carr said.
For more information, visit www.innovation.gov.au