The Australian Government formed a Business Tax Working Group (BTWG) in 2012 to investigate the options for reducing the corporate tax rate in a revenue neutral way by offsetting the cut in the rate with the removal of existing business tax concessions. In response to the Working Group’s discussion paper, Research Australia made a submission focused on the potential abolition of the Research & Development Tax Incentive. The submission opposed any change on the basis that the R&D Tax Incentive had not yet been in place long enough in its latest form for an evaluation to be made of its effectiveness or the impact of its removal.
On 24 October 2012, the BTWG released the draft of its final report. It did not recommend changes to the R&D Tax Incentive or to other business concessions such as the depreciation allowance. While the BTWG was in favour of a further cut in the corporate tax rate when economic circumstances permit, ‘a cut in the company tax rate funded from within the business tax system should not be pursued at this time’. Research Australia continues to monitor the final report and the Government’s response.
Business Tax Working Group
In 2012 the Australian Government introduced legislation that made significant reforms to the regulation of charities in Australia, including entitlement to tax concessions and the creation of a new regulator, the Australian Charities and Not-for-profits Commission (ACNC). Many health and medical research organisations and the organisations that support them are affected by this legislation, and Research Australia made a number of submissions throughout 2012 to the Australian Treasury, the ACNC taskforce and to parliamentary inquiries in relation to these changes. Further changes will be made in 2013, and Research Australia continues to represent the health and medical research sector in consultations on the new measures.
Australian Charities & Not-for-Profits Commission Bill
Review of Not-for-Profit Governance Arrangements
ACNC Implementation Design
Tax Laws Amendment Bill 2012
House of Representatives Standing Committee on Economics into Australian Charities and Not-for-Profit Commission Bill
Tax Laws Amendment Special Conditions for Not-for-Profit Concessions
The Australian Government established the Australian Research Committee (ARCom) in response to a need for greater coordination of its research investment. In 2012 the ARCom issued a discussion paper as part of its consultation on the development of a National Research Investment Plan (NRIP). Research Australia made a submission to the consultation, and the NRIP was subsequently provided to the Government in late 2012. The Minister has outlined a process for implementing the NRIP, and Research Australia will continue to engage with ARCom and the Government on this initiative.
National Research Investment Plan