The committee considers the new measures announced in the 2020-21 Budget to sufficient as they provide ‘significant clarity and motivation’ for all sectors undertaking R&D.
Australia’s research and development (R&D) laws have faced scrutiny from the country’s startups and big business, with many telling the Senate Economics Legislation Committee during its probe of the initiative that it greatly missed the mark. However, within the 2020-21 federal Budget was a new R&D-focused measure that the committee considers to be good enough to progress work on the Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019. “While many across the research and industry sector have found that the bill potentially did not hit the mark they were looking for, the committee considers that the new measure announced in the 2020-21 Budget should provide significant clarity and motivation for all sectors undertaking R&D,” it wrote in a report [PDF] delivered on Monday. The Budget contained a AU$2 billion boost in additional research and development tax incentives (RDTI), with government touting that the amount would help businesses manage the economic impacts of the COVID-19 pandemic. “Research and development, the adoption of digital technology, and affordable and reliable energy will be critical to Australia’s future economic prosperity,” Treasurer Josh Frydenberg said during his Budget speech.
