ACS calls for 200 percent R&D tax concessions

Stephen Withers
Friday, 13 June 2008 09:47

IT Industry - Market

The Australian Computer Society has called on the Rudd Labor Government to give back what the previous Howard coalition Government slashed - R&D tax concessions. What's more, the ACS wants a boost in R&D concessions to levels similar to that of countries like Singapore.

"The reduction of Australian tax concessions coupled, with complex application procedures for tax offsets and grants, is a disincentive, particularly for SMEs, in using the tax concessions," says the Society's submission to the National Innovation System Review.

To keep in line with other OECD countries, the Society says the basic concession should be restored to 150 percent, with a 175 percent rate applying to SMEs. A 200 percent incremental premium concession is also recommended.

Another disincentive is the complex administrative burden involved, including compulsory registration with Innovation Australia, "onerous" accounting procedures to separate eligible R&D costs from other costs, the need to deal with multiple agencies.

So the ACS is also pushing for a simplification of tax offset and grants procedures along with a doubling of the R&D tax offset threshold and other measures to encourage national innovation.

The ACS recommends significantly simplified administrative processes,"a one stop R&D tax concession shop", and an extension of the arrangements to cover all business structures, not just companies.

What else is the ACS proposing? See page 2.