United States
The government is currently preparing to release the pledged Innovation Statement, which will include more than 30 measures to boost the new economy. The statement, expected to be released on the 9th December, is anticipated to include changes to the R&D Tax Incentive. In specific, the incentive is predicted to overhaul the incentive payment to foster innovation and promote collaboration between industry and the university sector.
However, is the Australian government placing academic research before considering critical industry insights? According to BDO, the Innovation Statement is due prior to the finalisation of the R&D Tax Incentive registrant’s survey. The industry survey is part of the larger ‘Re:think Tax White Paper’ process and launched only just this month.
In relation to this, Nicola Purser, BDO research and development partner, believes that this is counterproductive to the spirit of innovation and the absence of commercial insights is incredibly inept. Purser notes, “It is disconcerting that the Australian Government is planning to announce its ‘revamp’ of the R&D Tax Incentive prior to finalising this survey and gathering the insights from business… In terms of specific measures, I would urge the Australian Government to consider more carefully the critical factors of expediency and promptness in commercial R&D, factors often misunderstood by academia and the public sector.”
Nonetheless, only the future will tell what lies ahead in the revamp of the R&D Tax Incentive. However in the meantime, as the incentive currently stands, businesses can gain back significant tax credits on investments they have made. Moreover, AusGrant and our team of specialist advisors will be able to assist you with any possible impacts the new R&D Tax Incentive may have. Contact us today to find out more about the R&D Tax Incentive and if your business qualifies.
