The New R&D
The Federal Government has announced crossbench support for the
new R&D Tax Credit Program. The new R&D Tax Credit Program
will replace the R&D Tax Concession effective from 1 July 2011
and provides eligible companies with a tax offset for expenditure
on eligible R&D activities.
The $1.8 billion R&D Tax Credit is aimed at delivering more
funding to innovative firms – including manufacturers,
ICT and biotech. The overall policy change is strategically aimed
to benefit businesses that innovate (by way of risk) and use
R&D as a platform for future growth.
Moore Stephens View
The R&D Tax Credit Program is demonstrating to the SME
sector that there is real Federal Government commitment to increase
genuine R&D in Australia. Globally, Australian companies are
facing increased competition from a resurgent China and other
countries with more lucrative R&D regimes. Now the playing
field has been levelled. The winners are the SME, Venture Capital
and
