Contact: Sergio Duchini
Deloitte
Partner Tax Services
(03) 9208 7376

Contact: Vessa Playfair
Deloitte
Director of Communications
(02) 9322 7576

The R&D tax concession turns 21 on 1 July 2007, however the Budget has delivered few presents.

“An opportunity has been missed to substantially reform the central plank of Government innovation policy which is almost 21 years old,” said Sergio Duchini, Deloitte National R&D Tax Incentives Leader.

“The reform to the 175% incremental concession announced on 1 May 2007 is to be welcomed as are the range of specific grants for the Intermediary Access Program and Commercial Ready Plus program.

“However, they do not go far enough to bring us into line with global best practice.

“Although not the only factor, tax incentives supporting innovation are an important factor which multi-nationals take into consideration when determining where they undertake their R&D activities.

“The continued Australian restriction on intellectual property ownership associated with the 125% R&D Tax concession is still a negative factor in this decision process.” concluded Serg Duchini.

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