Labor is calling on the Government to invest in innovation in next week's Budget.
"Tony Abbott’s first Budget tore $3 billion from Australia’s science, research and innovation system, demolishing successful programs that were helping to deliver the jobs of the future," said Senator Kim Carr, Shadow Minister for Higher Education, Research, Innovation and Industry. "The Budget was a disaster for Australian workers and the economy, creating a science brain drain and sending high tech jobs offshore."
Senator Carr accused the Abbott Government of abandoning a number programs and targeting others for "massive cuts", including the R&D Tax Incentive.
The Abbott Government has faced criticism from the R&D sector, including AusBiotech, for recent changes to the R&D Tax Incentive.
In a recent late-night deal, the Government secured support in the Senate from the Palmer United Party for changes to the R&D Tax Incentive that will see a $100 million cap on claims applied retrospectively to 1 July last year.
The Senate rejected a 1.5 per cent cut in the R&D Tax Incentive.
A recent Paper from Treasury also confirmed the Government’s intention to review the R&D tax incentive through the Tax White Paper, “within the broader context of reviewing the effectiveness of existing tax incentives for innovation, industry-funded research and collaboration with public research institutions.”
“Given the R&D tax incentive is the primary policy mechanism by which the Government encourages innovation, it is appropriate that the Government periodically review the operation of the incentive, evaluate its effectiveness and assess the extent to which it is meeting the intended policy objectives,” it said.
"It is time to reinvest in the drivers of innovation and the jobs of the future – science and innovation simply can’t afford any more cuts," Senator Carr said.
"The future of our economy depends on us being an innovative nation, investing in science, new technologies and building the new industrial capabilities that will drive breakthroughs in every field and industry."