The Greens have welcomed the Senate's rejection of the proposed 1.5 per cent cut in the R&D Tax Incentive.
The proposed cut was one of several changes to the tax incentive proposed by the Abbott Government in a deal with the Palmer United Party.
The other changes include a $100 million cap on claims backdated to last July.
AusBiotech welcomed the Senate's rejection of the cut but called on the Government to implement transitional arrangements for the other measures to assist companies "left in the lurch" by the sudden and retrospective nature of the change.
The Government agreed to separately consider the proposed 1.5 per cent cut to ensure passage of the other changes.
According to Greens Deputy Leader and science and research spokesperson, Adam Bandt MP, “This is a big win for science and research and a big win for business”.
“The Abbott government has followed the previous Labor government in cutting R&D, bringing investment in science, research and innovation to record lows. The Parliament’s rejection of these cuts is a step towards stemming the bleeding.
“Science and research are critical to our national wellbeing and Australia’s future clean economy will depend on research and innovation.
“The Liberal government should heed this decision of the Parliament and use the upcoming Budget to reverse the cuts to research and innovation,” Mr Bandt said.