The Australian Electrical and Electronic Manufacturers Association (AEEMA) is protesting the Federal Government's proposed changes to the R & D tax concession system.
An industry spokesperson said that the changes "are having a serious impact on confidence, innovation and competitiveness within Australia's electrical and electronic industries."
"Even the Industry Commission, which eschews most forms of assistance to industry, concluded in its report on R & D that the concession brought net benefits to the Australian economy and recommended its continuation," said Alex Gosman, AEEMA's executive director.
Gosman said that, if implemented, the proposed changes would lead to the concession's tax benefit being reduced as well as resulting in lost high-technology investment to other countries in our region.
Specifically, the association cited three main areas that would be affected: the ability of firms to fund sustained R & D; staff redundancies (already in evidence); reduced cash flow.
"In view of the demonstrable benefits of the 150 per cent tax concession to the Australia economy, it is extremely disappointing that the Government is seeking to emasculate the concession," Gosman said.
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