Last Friday the government released its 2015 Australian Industry Report which overviewed economic activity across industries. A chief segment of the report was an analysis of Australian and international studies regarding the impact of government-funded R&D tax incentives.
The examination arises in advance of the Turnbull Government producing its Innovation Statement today, which is predicted to include changes to the R&D Tax Incentive.
The report highlights the benefits of R&D and how it can be used as a main vehicle for innovation and firm competitiveness. In specific, the report notes, “New or significantly improved products and services can be sources of increased profits for innovating firms, while process innovation can lead to productivity and efficiency improvements. R&D therefore supports the underlying firm objective of profit maximisation while enabling firms to increase their market shares.”
Furthermore, according to the breakdown contained in the report, “…R&D is not persistent enough to be sustained over the long term without strong turnover or external stimulants such as spill overs and tax incentives, and it would rapidly fall to zero if not supported by other means such as strong sales or government assistance.”
Whether the Innovation Statement brings changes to the R&D Tax Incentive or not, Ausgrant can assist you in understanding more about the R&D tax scheme and if your company is eligible. Contact us today to talk to an R&D Tax specialists and find out more.
