Research & Development
R&D Tax Incentive unchanged
The Labor Party has committed to preserve the R&D Tax Incentive and is opposing the Coalition’s cuts to the scheme. It has also flagged that it may introduce new measures to the R&D Tax Incentive to incentivise private-public collaboration. The Coalition announced changes to the R&D tax incentive in the 2018-19 Federal Budget which are currently before Parliament and are unlikely to be passed before the election.
According to the Labor Party, Australia today is competing in a global innovation race. The Labor Party has set a national goal of 3% of GDP to R&D by the end of the next decade. According to the Labor Party “the R&D tax incentive is the principal policy mechanism to stimulate business research and development across industry.”
Based on Labor’s stated aims, and its commitment to ‘cleantech’ in the Budget-in-Reply speech, we wonder why the proposal is not to make the scheme more attractive than it currently is. Other countries are offering significantly more attractive schemes, leading to a flow of R&D activity offshore.