Submission to the Treasury | Research & Development Tax Incentive Amendments | 26 July 2018
The R&D tax concession was first introduced in 1985 with the aim of encouraging Australian industry to undertake R&D activities. Since then the R&D tax provisions have undergone a number of significant changes. The constantly changing R&D landscape creates additional administrative and compliance costs for Australian businesses. Consistency in R&D tax policy settings provides investment certainty to businesses. In particular, the Australian Chamber called for greater provision for R&D to lift investment and innovation in our Pre-budget submission for 2018-19. We are concerned that the targeting of R&D tax incentives in the Budget 2018-19 may dis-incentivise legitimate R&D activity. It is important that policy settings support R&D, and therefore productivity growth, rather than stifle it.