Innovation Internet > Sections > Innovation > R & D Tax Concession New Elements Evaluation Report
 
 
 
 
 
 


(Last Reviewed :  12/10/2009  )

The 2006 evaluation of the R&D Tax Concession focussed on the new features of the R&D Tax Concession that had been introduced in 2001:

  • The 175% Premium for research and development (R&D) expenditure above the average of a firm's previous three year expenditure
  • The R&D Tax Offset gives small firms in tax loss the option of receiving an early cash payment based on their eligible R&D expenditure, rather than a future entitlement to a deduction
  • The requirement for companies to prepare R&D plans for all R&D activities in order to be eligible for the R&D Tax Concession

The evaluation found that:

  • The 175% Premium was associated with an average increase in R&D of $379 million per year
  • The 175% Premium was effective in retaining and attracting R&D in Australia
  • The Offset had introduced an average of 1,000 extra firms per year, and was associated with an additional $310 million R&D a per year. This was approximately a doubling of R&D expenditure below $1 million
  • The Offset had a favourable impact and was effective
  • The R&D plans were effective in ensuring compliance and assisted firms to better document their R&D

The evaluation recommended that:

  • The 175% Premium and the R&D Tax Offset be evaluated again in 2009-10
  • The Government consider the evaluation's finding in relation to the appropriateness of the current R&D expenditure threshold for the Offset and its impact on incentives
  • The Guidelines for R&D Plans be reviewed and revised to provide better guidance to firms on intent and requirements




View Document: to view the complete version of this document, you can:
 Download New Elements of the R&D Tax Concession Evaluation Report - June 2007 (.pdf, 439KB)


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