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Australia Innovation Plan Published with Recommendation to Implement R&D Tax Incentive Changes — Orbitax Tax News & Alerts

On 29 January 2018, Australia's Department of Industry, Innovation, and Science published a plan on improving innovation in Australia, which covers several areas, including recommended improvement to Australia's Research and Development (R&D) Tax Incentive program. The recommended improvements include implementing the recommendations of the 2016 review of the program ({News-2016-09-30/P/2-previous coverage}), but with certain adjustments, which include:

  • The introduction of a cap of AUD 4 million per year (instead of AUD 2 million proposed) on the annual cash refund payable under the R&D Tax Incentive, with a maximum cumulative refund cap of AUD 40 million per company; and
  • The introduction of an intensity threshold of 1% of total expenditure, such that all R&D expenditure is claimable (subject to any other limits) once the trigger level is reached.

Click the following link for the plan: Australia 2030 - Prosperity through Innovation.