R&D incentives at risk

Mid-size businesses stand to lose research and development (R&D) incentives and miss out on promised company tax rate reductions as a new bill was introduced to Parliament, according to Grant Thornton.

In a statement, the firm said that lodged deep within the federal Budget papers was a note that the level of the tax offset support was to be dropped by 1.5 per cent to 43.5 per cent for the refundable tax offset and 38.5 per cent for the non-refundable.

This bill has now been introduced into the House of Representatives and, if passed through Parliament, will apply for the years of income starting after 1 July 2014.

Sukvinder Heyer, national leader for R&D tax at Grant Thornton Australia, said the bill could hurt innovation and discourage investment.

“The reduction in the rate was to go hand in hand with the reduction in income tax rate. The reduction is therefore proceeding but the reduction in income tax rates is not, except for small business with a turnover of less than $2 million,” she said.

“Innovation does not happen in isolation. It requires companies – small, medium and large – to be playing their part. Stable support is needed at all levels. Continued changing of the rules leads to uncertainty – the antithesis for encouraging investment.

“Mid-size businesses need a stable environment to invest in innovation and the chipping away at the main mechanism for supporting innovation, without public consultation, is disappointing,” Ms Heyer said.

Staff Reporter
Thursday, 28 May 2015
www.accountantsdaily.com.au

Cristy Houghton

Embarketing, 48 Johnston Street, Wagga Wagga, NSW, 2650

Cristy's unique career has taken her from country NSW to the city lights of Clarendon Street South Melbourne and back again. With an early career in radio as a copywriter and creative strategist, she is now a Jill of all trades as a graphic designer, website builder, blog writer, video editor, social media manager, marketing strategist and more. 

In fact, give her any task and this chick will figure out how to do it! Go on, we dare you!

No, really, we DARE you!!

Cristy has won two Australian Commercial Radio Awards (ACRAs) for Best Ad and Best Sales Promotion, and even has an 'Employee of the Year' certificate with her name on it.

Cristy and her husband James have traveled extensively through Russia, China and South East Asia, and have two fur-babies, Sooty (cat) and Panda (puppy). Cristy loves drinking coffee, meeting people to drink coffee, coffee tasting and coffee flavoured cocktails. She also enjoys road trips, TED Talks and watching cat videos on youtube.