For Now, Stay Tuned…..
Last week’s announcement that the independent Expert Panel’s Final Report for the Strategic Examination of Research & Development (SERD) will be delivered in the New Year was expected and will keep the tenterhooks in play for a little while longer.
As far as the R&D Tax Incentive (RDTI) is concerned, the SERD process has been one of catch up. Omitted from the original Terms of Reference, the weight of public submissions pointing this fact out culminated in a specific Issues Paper being provided on the topic at a later stage of the SERD.
In a previous MJA Update, we highlighted that the Paper was a fail as it appeared to be an amalgam of ideas that appeared in the submissions and it was internally inconsistent and, ultimately, incoherent. What it did highlight was the need for a considered review of the RDTI and MJA continues to press for this outcome.
In other words, the 15 year program is due for a comprehensive review of its features, benefits and operation but this needs to be an exercise that occurs as a result of the SERD’s overall findings. For SERD to recommend any specific changes or outcomes to the RDTI would be extremely premature. As always, we will keep you posted.
One change now on the table is the draft legislation to make R&D related to gambling and tobacco ineligible as these activities have the potential to cause public harm.
Public submissions regarding this legislation close on 30 January 2026.
MJA will be making a submission that looks at the broader implications of the proposed changes and we will explore this in a subsequent MJA Update in early January. Suffice to say, expect to see the word, ‘floodgates’, get a run in the ensuing debate.
Everyone at MJA wishes to thank everyone in the Australian innovation community that we have dealt with in the past 12 months. It remains our distinct honour and privilege to work with so many outstanding people and organisations.
At the end of a challenging 2025, we really do wish you a heartfelt Merry Christmas and a prosperous 2026!