Companies with an aggregated turnover of under $20 million will receive a credit in the form of a 45 per cent refundable tax. Companies with a higher turnover will receive 40 per cent.
Kim Carr, the Federal Minister for Innovation said the tax credit ?will allow more firms to benefit from our massive boost to the innovation, science and research budget, helping them grasp the opportunities of our transition to a cleaner economy?.
The credit currently provides for quarterly payments for small and medium business from 1 January, 2014.
Although the Australian Industry Group announced that it supports the increase in the effective rate of the tax incentive for small and medium business and the quarterly payment of the refundable tax offset, it still has issues with the experimental development initiatives, adding that it is the most important factor for new companies to get started but the most difficult to get funding for.
?The shortcomings in the new approach poses threats to businesses conducting R&D and to the broader national R&D effort,? declared Heather Ridout, Ai Group chief executive.
?The Government has indicated that it will be monitoring the operation of the new arrangement closely, as will Ai Group.?
Sources: Joint Media Release by the Hon Wayne Swan MP, Treasurer, and the Hon Senator Kim Carr, Minister for Innovation, Industry, Science and Research, Australian Industry Group
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