Independent MPs support boost for R&D

Businesses will get more support for research and development under legislation passed by the House of Representatives.

Innovation Minister Senator Kim Carr urged the Opposition to rethink its obstructionist approach.

“The new R&D Tax Credit will help small and large businesses to innovate, to become more productive and compete in a global economy, preserving and creating jobs for Australians,” Senator Carr said.

“Reforming business R&D support will deliver better value for money for business and Australian taxpayers than the current R&D Tax Concession.

Senator Carr said the Tax Credit will deliver the $1.6 billion available annually for business R&D in two key components:

• Small and medium enterprises will receive a 45% refundable credit, now allowing companies in tax loss to receive a cash refund - important for small businesses, especially start-ups that are often cash starved. It doubles the present base rate from 7.5 to 15 c in the dollar.
• Larger firms - companies with an aggregated turnover of $20 million or more - will receive a 40% non-refundable tax credit and can carry forward any unused offset amounts to reduce future tax liabilities. The base incentive is increased by a third from 7.5 to 10 c in the dollar.