Opposition Policy on R&D Tax Incentive

January 17th, 2019

With a federal election due over the coming months, the opposition labor party have made some announcements with respect to their policy on the R&D Tax incentive.

The original R&D tax incentive legislation was enacted whilst the labor was in power. Labor have committed to maintain the R&D tax incentive as the primary lever to induce business R&D.

Labor have indicated they would look to incorporate the collaboration premium within the R&D tax incentive for expenditure on activities undertaken in collaboration with academic and research institutions.

Labor have also expressed concerns with respect to the intensity threshold proposed to apply for companies with turnover greater than $20 million. The legislation to enact the intensity threshold is currently subject to a senate economics committee review after the legislation did not pass both Houses of Parliament.

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