The 2030 strategic plan from Innovation and Science Australia has recommended caps on payments under the R&D Tax Incentive Program.
The report released earlier today says investment in the R&D tax incentive can be better targeted with increased support for direct grant programs that target national priorities.
It has recommended a cap on the R&D tax incentive, set at $4 million per year, and that a maximum cumulative refund of $40 million per company should be applied.
It has also recommended an R&D investment trigger for companies of 1 per cent of total annual expenditure before the tax incentive can be claimed.
According to AusBiotech CEO, Glenn Cross, the organisation is reviewing the report’s recommendations and will brief members directly with regard to the implications.
“However, we note and support the encourage Australia’s participation in international trade activities. The industry would welcome this measure if it translates into national support for SMEs to attend promote their world-class capability at the unparalleled forum offered at the BIO International Congress in the US annually,” he said.
The report has recommended an increase in Export Market Development Grants funding, as well as expanding and making better use of trade agreements, which it says would be of particular assistance for young high-growth firms.
It has also recommended extended funding for international capability promotion through targeted trade missions and trade promotion activities.