ARTICLE · 25 NOVEMBER 2020

Federal Budget: A Boost To Research & Development To Accelerate Business Investment

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The aim of this year's Federal Budget is clear: increase consumer and business confidence, grow the economy, and create jobs.

AustraliaTax

Craig Finlayson

Felicity Dalle Nogare

Jacqueline Simpkin

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The aim of this year's Federal Budget is clear: increase consumer and business confidence, grow the economy, and create jobs. One way the government hopes to achieve this goal is through a boost to research and development (R&D) investment.

"We are providing $2 billion in additional Research and Development incentives – removing the cap on refunds, lifting the rate and rewarding those businesses that invest the most."

Treasurer Josh Frydenberg

The government has abandoned its controversial Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019 that sought to cut $1.8 billion from the R&D tax incentive. Instead, from 1 July 2021 it will inject $2 billion through a simpler system that rewards companies for investing more in R&D.

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