Home » News » Fintech Australia Uses Fintech And Regtech Senate Inquiry To Highlight Importance Of The R&D Tax Incentive

Fintech Australia Uses Fintech And Regtech Senate Inquiry To Highlight Importance Of The R&D Tax Incentive

January 14th, 2020 light bulb

In December 2019, Fintech Australia released its response to the Financial Technology and Regulatory Technology Senate inquiry. 

Their committee voiced concerns regarding the Government’s plan to cut $1.35B from the R&D Tax Incentive and stated that the current definition of “experiments” was impeding innovation by preventing software companies from claiming the tax offset.

The submission pointed out that the R&D Tax Incentive is the primary channel used to promote local innovation, with 64% of fintechs having applied for the scheme.

Fintech Australia’s recommendations for the R&D Tax Incentive were as follows:

  • Increasing the allocated budget;
  • Providing explicit guidance on how the incentive applies to software development to ensure it is well understood and used correctly;
  • Reviewing the treatment of companies making R&D claims for software development;
  • Simplifying the application requirements;
  • A broader interpretation of “experiments” to include companies contributing to building new and innovative services for the fintech sector, even where built on top of existing systems.

The select committee will present its final report on or before the first sitting day in October 2020.

 

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