R&D TAX BACKWARDS

Written on the 18 March 2010

A BRISBANE tax specialist has slammed the Federal Government’s proposed R&D tax incentive legislation, saying it will stifle corporate innovation and limit business claims.

BDO Kendalls research and development partner Tracey Murray, says businesses that take on risky R&D practices and produce successful results will be precluded from R&D applications under the draft legislation.

“But a company that conducts R&D activities that are either technically or commercially unsuccessful will be eligible to make an R&D claim,” says Murray.

“Instead of dealing with specific issues that needed to be freshened up as part of the R&D program, Treasury has adopted a sledgehammer approach to the draft legislation, resulting in the majority of current R&D claimants being ineligible to claim under the new proposed program.

“Not even the cost of the labour required to develop the R&D will be claimable, as the current legislation stands.

The new program does however support abject failure, where the R&D activities have produced nothing of value.”

Murray says the speed at which the draft legislation came out after the consultative process indicates that either it was already drafted and the government provided the 'illusion’ of consultation, or the Treasury ignored the collective wisdom of the business community.


Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter