The Mid-Year Economic and Fiscal Outlook Report for 2017-18 has been released, outlining and explaining major changes in payment estimates relating to policy decisions and other factors.
Since the last Budget, total cash payments have decreased by $3.4 billion and $8.8 billion over the four years to 2020-21 for parameter and other variations. Included in this category is the cost of the R&D Tax Incentive program, which is coming in less than expected for the 2017-18 year. Cash payments are expected to decrease by $128 million in 2017-18 or $696 million over the four years until 2020-21. This decrease reflects the reduction in eligible incentive amounts as well as lower than expected claims.