The Senate Economics Legislation Committee has launched an Inquiry into the Tax and Superannuation Laws Amendment (2014 Measures No.5) Bill. Schedule 3 of the Bill proposes reducing the rate of the R&D Tax Incentive by 1.5%. While ostensibly this is to align the rates with the proposed change in the Company Tax rate, in fact this measure will disadvantage innovative research intensive companies, and particularly those that are still in early stage development of their products. In fact the saving to the Budget over four years is expected to be around $600 million. Research Australia has made a submission to the Committee opposing the reduction in the rate of the R&D Tax Incentive on a number of grounds.
