R&D tax incentive set to support Australian businesses

Information sessions, held across Australia in September and October, will help businesses learn how to access and best use the new R&D tax incentive to drive the development of new ideas, products and processes.

Encouraging people to attend, Innovation Minister Senator Kim Carr said the R&D tax incentive, as the program will be now known, will support and reward the creativity of Australian businesses.

“We are a clever country. We have renamed the tax credit an incentive because that is what it is - an incentive for our creative firms and individuals to invest in new ideas, products and services.

“This is a huge opportunity for Australian firms. The new incentive is designed so more firms can access government support. It will provide assistance to innovating companies when they need it most,” Senator Carr said.

“The new incentive will support more firms - and it is important that people who may not have considered applying for assistance under the old system understand it is there to help them.

“That is why AusIndustry, together with the Australian Taxation Office, will be conducting information sessions around the country in September and October to ensure firms are aware of the support available under the program.

The incentive has more benefits and a clearer definition of research and development activities.

“The tax incentive effectively doubles the support for small firms to 15 cents in the dollar and increases support for all other firms by a third, to 10 cents in the dollar,” Senator Carr added.

The incentive starts retrospectively from 1 July 2011.

To register for an information session or for more information on the R&D tax incentive, visit the AusIndustry website.

Senator Carr said the R&D tax incentive complements the government’s Clean Energy Future initiative. Together, they will provide significant support for innovative firms to invest in research, development and commercialisation of clean technology products and services.