2016 Review of the R&D Tax Incentive
The 2016 review was informed by more than 90 submissions and consultations with leaders of business and research. The panel found that the Research and Development (R&D) Tax Incentive could do more to encourage additional research and research spillovers into other sectors.
The review panel made 6 recommendations aimed at improving the performance of the program to enable it to continue long-term.
Three of these recommendations encourage research that would otherwise not take place, known as ‘additionality’. These include providing extra incentives for businesses to hire PhD graduates and to collaborate with Australia’s world class research institutions.
The other 3 recommendations seek to strengthen the integrity and effectiveness of the program, including through reducing compliance costs for companies.
Activities incorporated into the review:
- R&D Tax Incentive Program Review by the Centre for International Economics [3MB PDF] [2.4MB DOCX]
- Analysis of program additionality by Professors Russell Thomson and Ahmed Skali [516KB PDF] [394KB DOCX]
- Survey of Research Service Providers by ORIMA Research [717KB PDF] [413KB DOCX]
- See the policy submissions and review issues paper and submissions
Following the review
In response to the review, the Government announced R&D Tax Incentive reforms aimed at improving the integrity and effectiveness of the program. These reforms were announced as part of the 2018–19 Federal Budget.
Revised legislation, the Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019, was introduced into Parliament in December 2019.
Enchanced reforms were announced in the 2020-21 Budget. These reforms supersede the 2019 Bill.