Robyn Denholm’s ‘comprehensive’ R&D review calls for overhaul of investment incentives

This includes proposals for new research grant programs, new manufacturing tax credits, a new governance framework, requiring super funds to offer an Australian high growth RD&I firms investment option and expanding the early stage venture capital limited partnerships scheme.

The report also recommends an overhaul of the R&D Tax Incentive, including the removal of the $150 million expenditure R&D expenditure cap, raising the threshold for R&D tax offset from $20 million to $50 million as well as introducing unique streams for startups, SMEs and scaleups.

The other members of the review panel include former chief scientist Ian Chubb, Winthrop Professor Fiona Wood and incoming Tech Council of Australia (TCA) CEO Kate Cornick. Consultation was undertaken throughout 2025 in response to one of the recommendations of the 2024 Universities Accords.

What they said: Ayres said: “I am so grateful for the work, expertise and experience that went into preparing Ambitious Australia. I want to thank Robyn Denholm for her intellectual rigour, hard work and commitment to the national value of Australia’s research and development system.”

He also said the report “charts out a long-term reform roadmap for me, and for the government to consider over coming months”.

The TCA said that the reforms to the R&D tax incentive were among “the most significant proposals”. TCA policy and government affairs director Lucinda Longcroft said “access to scale-up capital remains one of the biggest barriers facing Australian technology companies.

“Reforms that strengthen venture capital settings and make it easier for superannuation funds to invest in high-growth firms will help more Australian companies grow here rather than being forced to look overseas for funding,” Longcroft said.

Business Council of Australia CEO Bran Black said the group “strongly support reforms to the research and development tax incentive to make it simpler and more effective”.

“At a time of global economic uncertainty we must attract more investment to Australia and fixing our R&D settings is critical to that,” Black said.

Australian Academy of Science president Professor Chennupati Jagadish said the report is “the most comprehensive look at Australia’s research and innovation system in decades”.

He also stressed that while it is crucial that businesses increase their investment “the Australian Government must also reverse its own underinvestment”.

“The Federal Government must commit to a 10-year national R&D investment plan that brings government, industry and higher education together to restore investment and strengthen Australia’s international competitiveness.”

Australian Academy of Technological Sciences & Engineering president and former chief scientist Cathy Foley said: “The direction set out in the SERD report is important — and now the real work begins in implementing it. We need to make sure that the proposed reforms strengthen coordination and focus, rather than adding new layers of complexity to an already complicated system.”

Universities Australia CEO Luke Sheehy said: “We recognise the fiscal environment is tight, but R&D is an investment that pays for itself many times over through stronger productivity, new industries and better jobs.”