29 June 2018

Better targeting the Research and Development Tax Incentive

Note

Joint media release with
Senator the Hon. Michaelia Cash
Minister for Jobs and Innovation

The Turnbull Government is taking an important step to better target the Research and Development Tax Incentive (R&DTI), today releasing draft legislation for public comment.

The Treasurer, Scott Morrison MP, alongside the Minister for Jobs and Innovation Senator Michaelia Cash, said the consultation will help strike the right balance for the R&DTI — the Government’s key program for supporting business R&D in Australia.

“We are committed to backing R&D investment and the economic opportunities and jobs it generates. At the same time we need to make sure that the investment of taxpayers’ money is well targeted by encouraging companies to do more, and not just be rewarded for R&D they would have conducted without an incentive,” the Treasurer said.

Minister Cash said the proposed amendments ensure the reforms operate consistently with their policy intent and continue to provide targeted and effective support to innovative Australian companies that undertake R&D in Australia.

“By better targeting R&D investment, these changes will lead to new ideas, products, services and jobs,” Minister Cash said.

The amendments to the R&DTI form the Government’s response to the recommendations of the 2016 Review of the R&D Tax Incentive and the Innovation and Science Australia 2030 Strategic Plan.

The Turnbull Government is seeking stakeholder feedback on the implementation of the proposed amendments. The exposure draft legislation, explanatory materials and consultation document are available on the Treasury website. Interested stakeholders are encouraged to provide their views by Thursday 26 July 2018.

Submissions can be emailed to R&Damendments@treasury.gov.au during the consultation period.