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MJA Updates
The New R&D Tax Incentive: Refundable R&D Tax Offset – Some Value Trimming And A Fascinating Change
In yesterday’s MJA Update, we focused on the announced changes to the Non-Refundable R&D Tax Offset based on an R&D Intensity measure. The market in the past 48 hours has indicated strongly that these changes are not welcomed (once it was able to unravel the complex detail), particularly as the base rate of tax benefit offered (4%) sets a new world…The New R&D Tax Incentive: Non-Refundable R&D Tax Offset – The Winners (an elite few) and The Losers (everyone else)
All Budgets need to crack down on areas of concern to help pay for things like income tax cuts and the like. Reading last night’s Budget Papers, it seems like the three areas where the Federal Government needed to act were the age old enemies of illicit tobacco, cash-in-hand payments (ie. the Black Economy) and the R&D Tax Incentive (the…Budget Announces Changes To The R&D Tax Incentive: Things Just Got A Little More Complicated
The 2018 Budget has announced a series of changes to the R&D Tax Incentive that are intended to come into effect on 1 July 2018. In summary, the concern that some companies would be excluded from the program all together has not been realised. The changes see the R&D Tax Offset rates linked to matters such as prevailing company tax…The Proposed Intensity Measure for the Non-Refundable R&D Tax Offset: At The Risk Of Sounding Like A Broken Record…
Recent media reports suggest that next week's Federal Budget will introduce an intensity measure that will restrict access to the Non-Refundable R&D Tax Incentive to those company groups whose R&D intensity (group R&D expenditure divided by group total business expenses) exceeds a certain percentage. The figure mooted is 1%. There is no detail available around the proposal. The Triple F…The R&D Tax Incentive: It’s a Bad News Story Apparently
The remarks of the Treasurer, Scott Morrison, about the R&D Tax Incentive (the Incentive) reported in today's Australian Financial Review have focused attention on the program's future after a long hiatus since the consultations that followed the release of the Review of the Incentive commissioned as part of the Prime Minister's first (and only?) National Innovation Science Agenda. In fact, the only…Innovation and Science Australia Has Its Latest Say On The R&D Tax Incentive: In Developing Software, Innovation Isn’t Good Enough To Support A Claim
Today’s release by Innovation and Science Australia (ISA) of its report, “Australia 2030 Prosperity through Innovation”, sees the ISA take three key positions about the R&D Tax Incentive (the Incentive) and its protracted reform process. The relevant commentary appears at page 44 of the Report: “With the benefit of this feedback, and new data gathered as part of the ISA…The R&D Tax Incentive: It works and it works well
It has to be said that it’s been a tough couple of years for the R&D Tax Incentive (the Incentive). For what is meant to be available to the market as a planning tool, it’s taken a number of hits that have seen the program being regarded as anything but stable and certain including: The introduction of the $100 million…R&D Tax Incentive: Welcome to the Seven(ish) Year Itch Club
The R&D Tax Incentive (the Incentive) launched in its present form in the middle of 2011. Since that time, Australia’s Business Expenditure on Research & Development (BERD) has been rising steadily, matched by a spectacular growth in the number of companies claiming the Incentive, whereby program participation has nearly doubled, driven by a high uptake in the Refundable R&D Tax…Sometimes it’s just good to go with the classics
Recently, we had the pleasure of listening to two podcasts from the American program, Freakonomics, entitled “In Praise Of Maintenance” and “In Praise Of Incrementalism”. Each show was highlighting the virtues of callings that are often seen as the poor cousins of innovation. The programs felt timely and humbling. We can’t all be disruptive all of the time. So while…Keep informed
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