This week, the Business Council of Australia (BCA) released a report titled “Seizing the Moment“which proposes a plan to reverse the nation’s productivity slump and drive competitiveness.
The report warns that Australia can’t just keep relying on good luck to create economic success.
The BCA highlights that if Australia wants sustained wage growth and to maintain full employment, we need a reinvigorated economic growth agenda driven by large-scale investment, higher productivity, and greater innovation.
The R&D Tax Incentive is also mentioned several times throughout the report, and key highlights include:
Among a range of recommendations, the BCA has proposed that within 5 years, the government should enhance the Research and Development Tax Incentive by introducing a premium of up to 20 per cent to incentivise collaborations between industry and publicly funded research organisations and universities.
This initiative was originally proposed by a Government review of the R&D Tax Incentive conducted by Bill Ferris, Alan Finkel and John Fraser and released in 2016.