R&D credit a real boost (2/5)

Written on the 17 June 2009

A BDO Kendalls partner has praised the Federal Government’s proposed research and development tax concession, as it will provide clearer information about the financial rewards of innovation investment.
The reforms would come into effect from July 2010, offering 45 per cent refundable tax credits for small businesses with an annual turnover less than $20 million and a 40 per cent refund to companies that earn more than $20 million.
BDO Kendalls partner Tracey Murray, says the reforms are clearly seeking to motivate Australian businesses with an additional incentive to dedicate increasingly scarce resource to R & D activities.

“Faced with the challenges associated with keeping a burgeoning deficit under control, the government’s decision to commit $1.4 billion in spending on the R&D tax credit program over the next four years is a strong reaffirmation of the integral nature and pivotal role R&D plays in assisting businesses develop innovative ideas and products.”

She says larger companies with annual revenue of more than $20 million will save 10 cents on every dollar spent on eligible R & D activities. But clarification is needed about whether loss-making companies will be able to carry refunds forward.
“The current difficult economic conditions are likely to put some successful Australian businesses into temporary loss positions and, unless non-refundable R&D tax credits can be carried forward, many businesses will be denied the benefits of this initiative when they most need it.”

Murray advises companies that would benefit from the increased incentives of the changes to investigate holding off R & D expenditure until July 2010 to maximise their claims.

“It is encouraging that the Government is seeking industry consultation with respect to the redefinition of R&D from a taxation perspective - but it is essential the R&D tax credit scheme remains focused on incentivising businesses to achieve commercially focused outcomes,” she says.


Latest News

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter