Today the Rudd Government will begin consultation with key stakeholders on the detailed design features of the new R&D Tax Credit.
Releasing the Research and Development Tax Incentive Consultation Paper, Treasurer Wayne Swan and Innovation Minister Kim Carr urged business and other stakeholders to make their voices heard on reforms to the scheme.
Mr Swan said: "The new R&D Tax Credit is the biggest reform to business innovation support for more than a decade. It will boost investment, support jobs and strengthen Australian companies so they can take full advantage of new opportunities as the economy recovers.
"From 1 July 2010, the Government will replace the complex and outdated R&D Tax Concession with a simplified R&D Tax Credit which cuts red tape and provides a better incentive for all businesses to invest in research and innovation," he said.
Senator Carr said: "Under the new incentive system, eligibility criteria will be tightened to ensure the best return for the taxpayers' investment.
"All businesses stand to benefit, in different ways, from the reformed scheme.
"The aim of the new Tax Credit is to provide more predictable, less complex support to business.
"The consultation paper works from the basic principle that the reformed scheme will provide more generous support for R&D to help build a more innovative economy.
"The paper also poses a range of questions to business about how the Government could approach certain aspects of the scheme's design.
"The consultation paper delivers on the Government's promise to involve business and other stakeholders in the development of the eligibility criteria for the new credit," he said.
Stakeholders will have another opportunity to comment on draft legislation later this year.
Submissions are requested by Monday, 26 October 2009.
The consultation paper and further information about making a submission can be found on the Treasury website www.treasury.gov.au. Public forums will also be held during September and October 2009. Further details are available on the AusIndustry website www.ausindustry.gov.au.