Research Australia has used its submission to a Senate Inquiry to argue against the latest round of changes to the R&D Tax Incentive that have been proposed by the Government.
The changes contained in the Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019 are largely the same as the changes the Senate rejected early last year. Research Australia believes the changes are poorly designed and will significantly reduce R&D in the health sector. With expenditure on the R&D Tax Incentive Scheme having fallen dramatically in the last couple of years and with Government support for R&D at an historic low, Research Australia has urged the Senate Committee to reject the changes again.
Research Austrlaia’s submission is available here.
The submission of an alliance of seven groups from across the health and medical research and innovation sector, including Research Austrlaia, is available here.
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Research Australia has made a submission in response to the draft amendments to the R&D Tax Incentive legislation, the latest round of changes since the legislation commenced seven years ago. Research Australia’s submission addresses two key issues.
The first is our concern that the definition of clinical trial is not broad enough to ensure the exemption from the $4 million cap on R&D expenditure will apply to all clinical trials activity, particularly for medical devices. We have worked with other peak bodies, including Ausbiotech and BioMelbourne Network, to propose an alternative and more inclusive definition.
The second main concern relates to the proposed reduction in the rate of the R&D Tax Incentive. For early stage companies seeking to commercialise new pharmaceuticals, biotechnologies and devices, this has the effect of directly reducing their cashflow at a critical stage in their development. Research Australia has opposed the rate reduction.
Research Australia’s submission