All eyes on tonight's Budget

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The sector will be watching tonight's Budget closely for any announcement on the R&D Tax Incentive and other changes to innovation policy.

The Government is currently reviewing the R&D Tax Incentive programme, having already imposed an expenditure claim threshold of $100 million.

It has also attempted to cut claims by 1.5 per cent but the legislation has not navigated the parliamentary approval process and the Government has run out of time before the 2 July double dissolution election, which will be officially called next week.

It is possible any further changes or reforms to the R&D Tax Incentive could be included in tonight's Budget.

The review was announced in December last year as part of the National Innovation and Science Agenda, although it was already part of a wider review of the tax system by Treasury.

The Review is now being conducted by Mr Bill Ferris AC, Chair, Innovation & Science Australia, Dr Alan Finkel AO FTSE, Chief Scientist of Australia and Mr John Fraser, Secretary to the Treasury.

The Ferris Review is working off tight timelines, with a truncated stakeholder submission process, leading to some concern an outcome could be included in the Budget.