The Turnbull Government is encouraging feedback from Australia’s research and development (R&D) community, businesses and industry groups and other stakeholders on the R&D Tax Incentive Review findings released today.
The review was undertaken by Chair of Innovation Australia Bill Ferris, Australia’s Chief Scientist Alan Finkel and Secretary to the Treasury John Fraser, to:
“Identify opportunities to improve the effectiveness and integrity of the R&D Tax Incentive, including by sharpening its focus on encouraging additional R&D spending.”
The R&D Tax Incentive aims to boost the quality and quantity of R&D undertaken by industry to drive productivity and growth.
It’s a fundamental part of Australia’s R&D system and accounts for around one-third of the Turnbull Government’s support for innovation.
In 2013–14, around 13,700 entities generated $19.5 billion of R&D at an estimated cost to government of around $3 billion.
Innovation is crucial for both established and new businesses. It’s not just about tech startups or IT; it’s also about established businesses doing things better to be more productive and stay competitive.
The review includes recommendations to improve the effectiveness and integrity of the programme, including encouraging additional R&D expenditure and improving business-research collaboration.
The Turnbull Government is committed to pursuing innovation, and the economic opportunities and jobs it will generate. That’s why it’s important to ensure the government’s significant investment in R&D is generating maximum benefit for the economy and the Australian public.
I thank the Review Panel for their comprehensive work in developing the paper and their considered recommendations.
The report will be considered in three phases:
First, submissions are invited from now until 28 October 2016. This will be accompanied by industry and state-based roundtables in all states and territories.
Second, the Government will hold further discussions after all submissions have been received, during November and December.
Finally, the Government will respond as part of a broader National Innovation and Science Agenda second wave, with the intention of finalising our response before the end of March 2017.
The review report and further information about the consultation process are available at: www.business.gov.au/rd-review