Australian R&D Tax Credit called best in world 3 June 2010 The Competitive Alternatives 2010 Special Report: Focus on Tax (PDF), which has just been released by global professional services firm KPMG, has cited Australia’s new R&D tax credit system as ‘the best in the world’. The new system will come into operation from July 1 2010, and will double the rate of government support for R&D conducted by firms turning over less than $20 million to 15 cents in the dollar. Senator Kim Carr, the Australian Minister for Innovation, Industry, Science and Research, said: “This places our new R&D Tax Credit ahead of other tax credits offered in Canada, United States, France, Italy, Japan and Mexico. It also ranks higher than the R&D assistance provided in the Netherlands and the United Kingdom. The Minister added that the new R&D Tax Credit is more generous for all eligible businesses, better targeted at R&D deserving of public support, and boosts support for small and medium enterprises. He said that smaller firms can take this benefit in cash if they end the year in tax loss. This allows more small innovative firms to get an immediate contribution towards their R&D, even if they are not yet turning a profit. Larger businesses will be eligible for a 40 per cent non-refundable tax credit, which raises government assistance from 7.5 cents to 10 cents in the dollar. More information |