The new R&D tax incentive will aim to encourage innovation and strive to help Australian companies become more globally competitive.
The $1.8 billion R&D Tax Credit will introduce quarterly payments for small and medium businesses from 1 January 2014.
These firms will get their credit sooner, significantly improving their cash flow and incentive to invest in R&D for future growth.
The scheme will deliver more funding to innovative firms — including manufacturers, ICT and biotech — increasing productivity and Australia’s national income.
The new and improved credit will deliver a 45 per cent refundable tax credit to companies with an aggregated turnover of less than $20 million and a 40 per cent non-refundable offset to all others.
An advisory group will be established through the Innovation Australia Board to monitor the implementation and operation of the credit.
The government, through AusIndustry, will run an extensive education program to ensure firms are kept up to date.
