Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

R&D plan leaves too many questions unanswered

The Government’s R&D Tax Incentive policy shows it has taken on board some of the concerns raised by submitters but today’s release leaves too many unanswered questions, National’s Research, Science and Innovation spokesperson Dr Parmjeet Parmar says.

“The policy is short on details of compliance requirements and how Inland Revenue proposes to police the scheme. Without that information, businesses can only hope they comply and are keeping the right records. The scheme has to be more than just a bonanza for tax consultants.

“It is essential that businesses have certainty over the details, especially since the Government is determined to roll this out in 2019 while the Treasury had recommended a start in 2020 to allow proper policy implementation.

“Megan Woods has previously said some 3000 companies were expected to be eligible for the tax credit but seems to have retreated from that target today by saying it will be more than 2000.

“Those that are ‘pre-profit’ will be covered by temporary arrangements subject to review down the track because the issues were too complex to resolve now.

“The Government has lifted its incentive from 12.5 per cent to 15 per cent of eligible R&D spending but that’s still below the 20 per cent rate that applies to Growth Grants under the existing programme.

“Changes in this version of the policy, including dropping the R&D spending threshold to $50,000 from $100,000 and what appears to be an expansion of eligible organisations, won’t come without extra cost yet the Government still claims it will cost $1 billion over four years.

“Australia’s comparable scheme ended up costing twice its original budget, so Ms Woods needs to explain how the Government will stay within budget.

“Small and unprofitable firms were able to find support under National’s innovation ecosystem. We understood that the big companies of tomorrow emerge from the risk-taking entrepreneurs of today.”



© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Emission Statement: 'Consensus Reached' On Agriculture

Today the Government launched a consultation document, informed by the work of the Interim Climate Change Committee (ICCC), on how to bring agriculture into the emissions trading scheme, a key part of the Government’s plan to tackle climate change and reduce New Zealand’s emissions.

Agricultural emissions make up nearly half of New Zealand’s total emissions profile and are the largest contributor to greenhouse gas emissions in New Zealand. More>>

 
 

Gordon Campbell: On What’s Wrong With Wellington

For many Wellingtonians, it hasn’t been the normal hardships – the workings of central government and the lousy weather – that have recently pushed their tolerance into the red zone. It has been the inability of local government to maintain even the basics. More>>

ALSO:

$1m Compensation Paid: First Gun Ban Event In Christchurch

The Police Minister says the first ever firearms collection event in Christchurch over the weekend was a huge success. But Stuart Nash had concerns about whether the participation reflected the number of weapons in the region. More>>

ALSO:

The Kids: Youth Parliament 2019 Event Kicks Off

120 Youth MPs and 20 Youth Press Gallery members have gathered in Wellington to attend the two-day Youth Parliament event ... More>>

Friends Like These: Foreign Minister To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. today for talks with senior members of the US Administration, and to attend the Ministerial to Advance Religious Freedom. More>>

ALSO:

Gordon Campbell: On The Aussie Banks’ Latest Fee Hike Excuse

When the Reserve Bank sought feedback on its plans to require the country’s major banks to raise their capital reserves then you might have expected the banks to whine and complain. And so they have. More>>

ALSO:

Sitting On Defence: Terms Of Reference For Defence Estate Review

“The 81,000 hectare Defence estate is at a crossroads; much of it is run down, and outdated,” says Ron Mark. “It needs to be improved in order to gain, train and retain our service people, now and into the future." More>>

ALSO:

Meng Foon: Retiring Gisborne Mayor To Be Race Relations Commissioner

Andrew Little: “He has an outstanding record as a relationship builder and walks comfortably in the pākehā world, the Māori world, the Chinese community and other communities making up New Zealand." More>>

ALSO:

NCEA: Students Granted Qualifications After Fees Scrapped

Almost 150,000 current and former students with unpaid NCEA fees have today been formally awarded their NCEA credits or qualifications. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels