{"id":1000,"date":"2016-05-05T02:03:18","date_gmt":"2016-05-05T02:03:18","guid":{"rendered":"http:\/\/ausgrant.com.au\/?p=1000"},"modified":"2016-05-05T02:03:18","modified_gmt":"2016-05-05T02:03:18","slug":"federal-budget-impact-the-rd-tax-incentive","status":"publish","type":"post","link":"https:\/\/ausgrant.com\/au\/federal-budget-impact-the-rd-tax-incentive\/","title":{"rendered":"Does the 16-17 Federal Budget Impact the R&D Tax Incentive?"},"content":{"rendered":"

\"\"<\/a>In a bid to broaden the economy away from a reliance on mining, the Australian government launched the National Innovation and Science Agenda (NISA)\u00a0last December. The Australian Federal Budget for 2016-17 released on Tuesday night reaffirmed several elements of last year\u2019s $1.1 billion innovation statement. Whilst the budget did not state any meticulous changes to the R&D tax incentive, a number of other changes have the potential to complement local R&D activity.<\/p>\n

Most notably, under a 10-year plan, the corporate tax rate will decrease for all companies from 30% to 25%. From 1 July, the small business tax rate will be cut by 1%, creating a figure of 27.5%. In addition, the turnover threshold for small businesses able to access a reduced tax rate will be increased to $10 million (currently companies under $2 million tax rate of 28.5%). The proposed changes to the corporate tax rate will therefore affect the permanent R&D benefit (R&D tax offset rate minus corporate tax rate) for companies with less than $10 million.<\/p>\n

Therefore, the proposed figures for companies under $10 million would be:<\/p>\n