Grant Thornton is disappointed that hidden in depths of the Budget papers was the signaling of the Government to proceed with the rate reduction of the R&D tax offset by 1.5% .
The potential new rates would be 43.5% for the refundable tax offset and 38.5% for the non-refundable tax offset.
“When this was first flagged in the previous budget, the reduction in the rate was linked to the reduction in the rate of company income tax. However, the company tax rate is only being dropped for small business with an aggregate turnover of less than $2 million.
“Such a move is at odds with driver for the range of tax concession being offered to small business, being freeing up of cash – to allow investment in innovation and create jobs. For companies in tax losses, the reduction in rate represents a loss of cash, which could be used to fund further investment in innovation.
“Innovation does not happen in isolation. It requires companies small, medium and large to be playing their part. Stable support is needed at all levels and this continued changing of the rules leads to uncertainty – the antithesis for encouraging investment,” said Sukvinder Heyer, National Leader R&D Tax, Grant Thornton Australia.
For more information please contact:
Helina Lilley, National Public Relations Manager, T +61 2 8297 2421M 0437 725 520, E , firstname.lastname@example.org