Federal Budget 2019-20: impact to Government Incentives for business

One might be forgiven for thinking that the adage ‘no news is good news’ might apply to the announcement (or lack thereof) of changes to the Research and Development Tax Incentive.  However, from within the silence emanating from the night of Tuesday 2 April 2019 to Australia’s innovation community was a saving of $1.35 billion across forward estimates from the Tax Incentive.

It is yet to be seen whether this $1.35 billion saving should result from the existing Bill before Parliament that is seeking to modify certain aspects of the Tax Incentive, from an anticipated reduction in R&D claims, from increased R&D audit activity, or from a combination of these.

A very small consolation prize was the announcement of an additional $60M towards the Export Market Development Grant program.