Contact: Serg Duchini
Deloitte
Partner and National R&D leader
0411 193 737

Contact: Amanda Kennedy
Deloitte
Manager, Media and Communications
+61 (0) 418 806 477

 Changes to the 175 per cent R&D tax concession announced today are a welcome boost to multinational companies undertaking R&D in Australia.

Serg Duchini, Deloitte partner and national R&D leader, said the proposal to eliminate the beneficial ownership test from the application of the 175 per cent incremental tax concession brings Australian policy closer in line with other countries.

“Competition globally for R&D investment has recently seen a number of countries significantly enhance policies that support and encourage R&D,” Mr Duchini said.

“The removal of the requirement to own the intellectual property (IP) in Australia will make us more competitive to multinational companies looking at where to undertake their R&D projects.

“The issue of IP ownership and its connection to R&D is one of the key issues considered when evaluating R&D options. 

“Jurisdictions that dictate where IP must reside are increasingly out of step with the global trend.”

Mr Duchini said the key to the success of this policy initiative will be to ensure that it is simple to administer by companies.