This submission outlines our view in response to the Australian Federal Government’s Tax Discussion White Paper “Re:think”. Re:think contains two questions concerning innovation:
Question 39: Does the R&D tax incentive encourage companies to conduct R&D activities that would otherwise not be conducted in the absence of government support? Would alternative approaches better achieve this objective and, if so, how?
Question 40: What other taxation incentives, including changes to existing measures, are appropriate to encourage investment in innovation and entrepreneurship?
Australia faces many challenges at present with drastic reductions in commodity prices, high labour costs and competitive challenges from currency exchange.
Unlike the United Kingdom, the United States and most of the developed world, Australia has no current innovation strategy or policy.
If we don’t act quickly to develop and implement a plan to support innovation, SME’s in the manufacturing sector particularly, will lose confidence to invest in long term projects that are key to Australia’s economic development and competitiveness.
Below is a summary of our points of emphasis within this submission:
Click here to read the Tax Discussion White Paper “Re:think” – Swanson Reed Submission
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