The Gillard Government’s Research and Development (R&D) Tax Credit could result in new jobs, investment and improved productivity for small and medium businesses, according to a report.
The Australian Business Foundation report The BERD in the hand: Supporting Business Investment in Research and Development, focused on the merits of the tax credit and urged its immediate introduction because further delays could impact R&D activities of SMBs.
Innovation Minister Senator, Kim Carr, said Australians can expect a boost in the number of high-skill, high-wage jobs to flow from the introduction of the R&D tax.
“The R&D Tax Credit is a key part of the Government’s overall innovation strategy and I am pleased this report strongly endorses its higher rates of support and the changes in the definition of eligible R&D,” Carr said.
Last month, Treasurer Wayne Swan and Senator Carr welcomed crossbench Senators announcing their support for the Credit as the parliamentary road-block put in place by the Coalition is now removed.
The Bills to establish the Credit will be debated in the Senate next month.
In addition to the Credit, the government is further investing in Australia’s innovative industry through the Clean Energy Future package.
The package includes a $1.2 billion Clean Technology Program, administered by the Department of Innovation, Industry, Science and Research, which will power research, development and commercialisation of clean technology products, processes and services in the manufacturing sector.