More businesses will get more support for research and development under legislation passed by the House of Representatives.
Innovation Minister Senator Kim Carr thanked Independent MPs for supporting the legislation, saying it was the most significant change to business R&D incentives for more than a decade. He urged the Opposition to re-think its obstructionist approach.
âThe 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,â Senator Carr said.
âReforming business R&D support will deliver better value for money for business and Australian taxpayers than the current R&D Tax Concession.
âThe outmoded Tax Concession failed to deliver sufficient incentives to Australiaâs engine room - small and medium enterprises - and allowed some companies to use taxpayer dollars to subsidise âbusiness-as-usualâ activities, rather than genuine R&D.
Senator Carr said the R&D Tax Credit will deliver the $1.6 billion available annually for business R&D in two key components:
âThe R&D Tax Credit is an important part of the Gillard Labor governmentâs microeconomic reform agenda. It will also target R&D undertaken in Australia regardless of where the intellectual property is held,â Senator Carr said.
âPassing this legislation through the House of Representatives is good for Australia, Australian industry and for ordinary Australians, and has been made possible with the support of the Independents and Greens.â