Chamber welcomes new R&D tax incentives

Business Central welcomes the new research and development tax incentives announced by the Government today.

"This is the sort of move business has been advocating to encourage more innovation, and it’s great the Government has seen the merit in what we were saying," says Chief Executive John Milford.

"Small business, in particular, will benefit from the halving of the amount of R&D investment required before a tax credit can be claimed, from $100,000 to $50,000. Raising the rate from the proposed 12.5% to 15% is also an unexpected bonus.

"These changes, plus the fact that knowing before they even start their R&D work that their application for the tax credit has been pre-approved, will no doubt encourage a lot more of them to innovate where otherwise they might not have, and that’s exactly what we need to see happen for the good of the economy.

"Taking a lot of the uncertainty out of the equation means a lot to businesses where R&D money is tight.

"These are the type of incentives that business can immediately relate to, and over time they will help to lift productivity."

ENDS

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