ALP pledges $170m in proposed R&D premium
In what would seem to be one of their final attempts to win the votes of Australian tech enthusiasts, the Australian Labor Party (ALP) have announced that they intend on injecting $170 million into the Research and Development Tax Incentive (RDTI) to encourage businesses to collaborate with research organisations like universities and the CSIRO.
According to Senator Kim Carr, shadow minister for industry, if the ALP wins the upcoming election, they will look to re-write the R&D Tax legislation to incorporate a 10 per cent increase to the value of the tax offset for those who tap into the skills and expertise of research organisations when creating novel products or processes.
This 10 per cent increase is set to cost tax payers $170 million over a four-year period.
The proposed premium would cover the costs associated with embedding researchers within a university as well as the employment of PhD students or graduates who are tasked with conducting various research activities on behalf of the tax incentive claimant.
In the event of a Labor victory, the changes will be finalised and implemented as early as 1 July 2019.
Amidst ongoing drama surrounding the RDTI, the ALP have also made it clear that they intend on reviewing the broader elements of the RDTI in order to ensure that companies in the ICT space aren’t unfairly discriminated against.
The Coalition are yet to put any sort of focus on the RDTI as part of their electoral campaign, aside for responding to the ALP’s comments on reviewing the incentive, saying that their comments were misleading, irrelevant and merely a ploy to win more votes.