Glasshouse Advisory reports on proposed changes to
R&D Tax program to benefit foreign multinationals over
Australian based multinationals.
When Treasurer Scott Morrison announced his intention to
overhaul the current R&D Tax Incentive program in the recent
Federal Budget, he cited a need to restore integrity to the current
program and to reward those companies that invest heavily in
R&D activities. Given the scant detail within the budget papers
as to how this objective was going to be achieved, it was initially
difficult to assess its impact on a company's R&D program,
despite the Treasurer indicating the changes to the program will
come into effect from 1 July 2018.
On Friday, the 29th June, Treasury released its draft R&D
legislation, along with a 28-day public comment and consultation
period. While the draft legislation has taken the opportunity to
address a number of inconsistencies in the current R&D
legislation, (primarily around the mismatch in the
