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Big businesses against R&D tax exclusions

January 31st, 2014

The recent submissions to the Economics Legislative Committee were an opportunity for business’ to voice their opinions on recent proposed R&D tax exclusions put forward in the Tax Laws Amendment (Research and Development) Bill 2013. Swanson Reed supported the proposed changes in our submission due to potential benefits to SMEs and the Australian economy (Click here to view our blog on our submission). However big businesses have used the opportunity to fight the proposed changes.

The Australian reported on the submissions stating that “Sharemarket-listed giants including Telstra and Caltex, as well as groups like the Minerals Council of Australia (MCA) – whose members include Rio Tinto and BHP Billiton  – yesterday wrote to the Senate in a bid to block the $1.1 billion cut to the tax breaks”.

Submissions by some of the largest corporations in Australia opposed the changes for the following reasons:

  • The MCA submission stated “the cost to Australia’s economy of reducing incentives for innovation, including longer term impacts of such as competitiveness and productivity, will likely far outweigh the short term revenue gain of $1.1 billion”.

  • Telstra in their submission admitted that “the incentive is not the only reason Telstra undertakes R&D onshore “ however stated that “any change to the nature of the incentive will be considered by Telstra as a factor in undertaking our business”.

  • Caltex voiced one of its main concerns with the legislation as being “turnover can be a poor measure of profitability… the tax incentives changes will unfairly impact on a small number of companies, such as Caltex, which have high assessable incomes but relatively low profits”.

Swanson Reed provided an objective analysis of the proposed R&D tax exclusions, concluding the proposed changes beneficial and offered recommendations to the government to ensure a stable taxation regime and a commitment to innovation in Australia.

R&D Tax Incentive - Swanson Reed Specialist R&D Tax Advisors

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I have been using Swanson Reed for my clients for more than a decade.  Having a specialist firm that can provide practical and commercial advice that produces real outcomes is very important and we have received great feedback from our clients.
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Experienced responsive Team. They have been a great help to me and my company navigate the R&D tax claim process and have provided invaluable advice.
  
 
 
  
 
 
 
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Damian and the team at Swanson Reed have been extremely helpfully and professional during all of our consultations. Highly recommended.
  
 
 
  
 
 
 
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The Swanson Reed team have provided our company with exceptional professional advice and assistance for all of our R&D claims for many years - have always achieved great results with excellent value for their services.
  
 
 
  
 
 
 
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Damian Smyth and his team are very helpful, supportive and experts in their field of R&D Tax claims. I'm always happy with the work they do and been a customer of their for over 5 years.
  
 
 
  
 
 
 
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2022-05-31
 
 
  
 
The Team at Swanson Reed are very experienced R&D Tax Advisors and gave us ongoing support with all of our R&D Claims, the consultants ensured we were always working with current legislative guidelines, gave us assistance with compiling technical and government documentation and went out their way to ensure they were with us for the entire process from beginning to end.  Highly recommended to anyone who needs assistance with working through what can at times be a daunting process.
  
 
 
  
 
 
 
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We can highly recommend Swanson and Reed as an R & D accountant. We have worked with them for several years now as they make our R & D claim so easy and communicate quickly with both us and our accountant.
  
 
 
  
 
 
 
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2022-05-31
 
 
  
 
Always professional.