The Senate Economics Legislation Committee has today handed down their recommendation on proposed changes to the R&D Tax Incentive which have followed recent consultations with the industry.
The committee which is made up of members from varying sides of politics has recommended the Senate “defer consideration” of the bill until “further examination and analysis of the impact is undertaken”. Given that there are only a limited number of parliamentary sitting days until the next federal election, this outcome means the prospect of the changes passing in the near term may be limited.
Of particular concern to the committee was the proposed “intensity threshold” measure that would increase complexity to calculation of R&D tax offsets for companies with turnover exceeding $20M AUD, and may reduce the relative R&D Offset available to companies with high cost bases, such as those with local manufacturing operations.
Swanson Reed R&D Tax Consultants help companies to claim this incentive and help ensure that companies receive the maximum eligible amount. If your company is developing novel solutions, take our online eligibility quiz to find out whether you qualify for a tax rebate.