Denholm’s R&D reforms adopted as Labor seeks to fend off CGT fears
The federal government is proceeding with an overhaul of the RDTI from its broad to eligibility criteria to be more targeted.
The Albanese government is overhauling the popular R&D tax incentive (RDTI) program and expanding access to venture capital incentives to increase support for “young, growing firms”, in response to Tesla chair Robyn Denholm’s year-long review.
The adoption of the recommendations, including plans for a new R&D spending coordination body, aims to improve the system of support for startups to scale into larger companies within Australia.
The package lands as the government consults with the startup sector amid concerns that the end to the capital gains tax discount will dissuade startups, which commonly issue stock as compensation, from scaling from Australia.
The government’s changes to the RDTI from 2028-29 is set to save the government $650 million, with the program’s broad eligibility criteria tightened to focus on core R&D activity for small businesses that are younger than 10 years.
