Australia publishes the conclusions of the review of tax credit
Published: | 05.10.2016 | news
The Australian Government has published a review of research and development tax credit. The Australian Government has published a review of research and development tax credit. The review was commissioned in December 2015 as part of the agenda of the Government of National Innovation and Science (NISA). The goal was to determine how the efficiency and integrity of the research and development tax credit can be improved. The Commission has made six recommendations. They said that the government should: – Set a single premium of up to 20 per cent non-refundable tax refund; – Enter the maximum in order AUD2 million on an annual refund; – Enter the one – or two percent limit for recipients of the non-refundable component of the research and development tax credit; – If the intensity threshold is set to increase the threshold to AUD200 million of expenditure; – Explore options for better management in the research and development tax incentives, including the establishment of a single application process, developing a single framework of this program, as well as the optimization of processes to verify compliance with established rules and regulations; – Save the current definition of eligible activities and expenses in accordance with the law, but to develop new guidance, case studies, as well as government regulations to give greater clarity within these eligible activities and expenses. Public consultation on the recommendations will be open until 28 October. The Government will conduct further discussions after all materials are received, in November and December. And give its final decision until the end of March 2017.