MJA on Switzer
Kris Gale, Managing Director of Michael Johnson Associates, is appearing on “Switzer” this Wednesday to discuss the imminent R&D Tax Credit.
The show airs between 7.00pm and 8.00pm on Sky News Business Channel. The interview is also likely to be subsequently posted at www.skynews.com.au
Should you wish to discuss the R&D Tax Credit any further, please do not hesitate to contact Kris Gale directly on (02) 9810 7211 or using our contact form to discuss the matters raised in this MJA Update in greater detail.
R&D Tax Credit Opens For Business
Great News For SMEs Down The Road
The Federal Government has confirmed that the revised start date of the R&D Tax Credit will be 1 July 2011 in a joint release from the Treasurer and the Minister for Innovation, Industry, Science and Research.
In a sweetener for SMEs, loss-making claimants will be eligible for quarterly payments of their Credit entitlements from 1 January 2014. Something to look forward to!
The text of the press release appears below.
CROSSBENCH SUPPORT MEANS NEW R&D TAX CREDIT WILL START ON 1 JULY 2011
Australian companies will become more innovative and globally competitive thanks to the new R&D tax incentive.
The Gillard Labor Government’s $1.8 billion R&D Tax Credit will deliver more funding to innovative firms – including manufacturers, ICT and biotech – increasing productivity and Australia’s national income.
This builds on Labor’s policy reform agenda of the past four years and will be a major benefit for businesses that innovate and use R&D as a platform for future growth.
Today we welcome crossbench Senators announcing their support which means the parliamentary road-block put in place by the Coalition will finally be removed.
The new and improved Credit will target more funds to genuine R&D deserving of public support – good news for industry and better value for taxpayers.
It will deliver a 45 per cent refundable tax credit to companies with an aggregated turnover of less than $20 million and a 40 per cent non-refundable offset to all others.
This will allow more firms to benefit from our massive boost to the innovation, science and research budget, helping them grasp the opportunities of our transition to a cleaner economy.
We welcome the commitment of industry, the Greens and independent parliamentarians who have put good policy ahead of political posturing in supporting this reform.
The development is the culmination of an extensive consultation and negotiation process.
Following discussions with the Greens, the Government will introduce quarterly payments for small and medium businesses from 1 January 2014. These firms will get their credit sooner, significantly improving their cash flow and incentive to invest in R&D.
The deferral of the start date to 1 July 2011 has an overall impact of $40m, with a negative impact of $310m in 2011-12 and a positive impact in 2012-13 of $270m.
The Government will continue to work in partnership with the business community to get the most from this landmark reform. An advisory group will be established through the Innovation Australia Board to monitor the implementation and operation of the Credit. The Government, through AusIndustry, will run an extensive education program to ensure firms are kept up to date.
MJA will keep you informed of all major developments as the Credit legislation becomes law.
Should you wish to discuss this matter any further, please do not hesitate to contact Kris Gale directly on (02) 9810 7211 or using our contact form to discuss the matters raised in this MJA Update in greater detail.
R&D Tax Credit Is On The Runway
The Minister for Innovation, Industry, Science and Research, Kim Carr, has given a strong indication that the R&D Tax Credit is set to effectively commence on 1 July 2011.
Questioned earlier this week in a Senate Estimates hearing, Senator Carr stated that the matter will be brought on for debate in the new Senate where the Bill is likely to attract majority support. The composition of the Senate changes on 1 July 2011 when the Greens will assume the balance of power in the Upper House.
Senator Carr has also apparently backed down from his position of making the R&D Tax Credit legislation retrospective to 1 July 2010. As we have been suggesting for some time, the revised start date is likely to be 1 July 2011.
Should you wish to discuss this matter any further, please do not hesitate to contact Kris Gale directly on (02) 9810 7211 or using our contact form to discuss the matters raised in this MJA Update in greater detail.
- The R&D Tax Incentive – Like the Footy Finalists, Take It One Week at A Time
- R&D Tax Credit finally passed through the Senate
- Alas, poor R&D project, we knew you well
- Are We There Yet? Are We There Yet? Are We There Yet?
- MJA on Switzer
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