‘Too high a bar’: Overhauling $4.6b R&D tax incentive panned as too complex
Economists and industry widely welcomed the reform package in Robyn Denholm’s R&D review but cautioned the government not to make things more convoluted.
Tesla chair Robyn Denholm’s review recommendations to lift research and development activity in Australia has sparked fierce debate among the nation’s business representatives.
While industry groups and economists say the nation risks falling behind if the suggestions are ignored, many warn changes to the $4.6 billion R&D tax incentive (RDTI) could backfire.
While the proposed RDTI overhaul is intended to make the scheme simpler and more focused, there are concerns it will introduce additional layers of complexity and undermine what made the scheme attractive in the first place.
The ‘Ambitious Australia’ report calls for a range of changes including an increase to the minimum threshold to claim the RDTI as well as a new ‘premium startup’ stream that offers a higher tax offset rate and revised rules for SMEs.
