Australia to reform R&D Tax Credit 23 December 2009 In what is regarded as the biggest reform to Australian business innovation policy in over a decade, the Australian Government has released draft legislation for a new R&D Tax Credit. Under the proposed legislation, businesses will be able to claim a tax offset of at least 40 per cent on R&D expenditure. This figure will rise to 45 per cent for companies which have a turnover of less than $20 million. And, in a boost for innovative start-ups, small businesses will be eligible to apply for an immediate tax contribution towards their R&D spend, even if they are not yet turning a profit. Companies undertaking R&D in Australia where the intellectual property is held offshore by an associated entity, or companies undertaking R&D in Australia that are foreign-owned, will also be able to access the non-refundable tax credit (offset). The R&D Tax Credit draft legislation was announced jointly by the Australian Treasurer, Wayne Swan, and the Minister for Innovation, Industry, Science and Research, Senator Kim Carr. The legislation will be introduced into the Australian Parliament early next year, ahead of the expected 1 July start of the new scheme. More information |