Robyn Denholm wants ‘support’ for firms hit by shock R&D funding cuts
The Tesla chair conducted a sweeping review of Australia’s R&D incentives. But even she didn’t expect the change in last week’s budget that has blindsided the biotech and deep tech sectors.
Tesla chair Robyn Denholm has urged the Albanese government to find other ways to support companies caught on the wrong side of an unexpected budget tweak that biotech companies and deep tech startups fear will starve them of critical funding.
Denholm led a year-long review into Australia’s research, development and innovation ecosystem, which formed the basis of the governments R&D tax incentive changes including increasing the maximum expenditure cap for large companies from $150 million to $200 million.
While her review recommended the introduction of a time limited premium startup stream, which has not been adopted, it did not recommend a blanket age cap on the broader refundable stream for small to medium sized businesses.
As Capital Brief reported this week, the 10 year age limit for the refundable R&D stream was buried in the budget papers. It has sparked outrage among biotech and deep tech companies which can spend decades undertaking R&D before generating revenue. Several ASX-listed recipients are among those now facing a funding cliff.
