Australia’s R&D tax concession system is undergoing its most profound changes since its introduction in 1985. The Review of the National Innovation System proposes a tax credit system with additional incentives for companies with turnover under $50 million. New rules and definitions will impact all companies involved in product development, process improvement and innovation generally. This paper explains the changes and identifies strategies for companies to manage this transition and participate in the new R&D tax credit system including:
- key changes by the new Government
- practical implications of those changes to business
- R&D compliance issues
- recent R&D developments (ATO and AusIndustry rulings)
- transitional arrangements and planning issues.