Budget passes with no mention of R&D Tax Incentive


This year's Budget has passed without any mention of the review of the R&D Tax Incentive.

The Budget included limited announcements on new policy support for innovation.

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

Amongst a small number of measures, the Government announced $15 million for a National Carp Control Plan and funding to the Australian Nuclear Science and Technology Organisation (ANSTO) to ensure more efficient disposal of nuclear waste created during the production of medicines.

The was no mention of the current review of the R&D Tax Incentive.

The Turnbull Government is currently reviewing the programme. 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 Government 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 in the next few days.