The Federal Government has called for comment on the administration of the new R&D Tax Credit.

 

Innovation Minister Senator Kim Carr said the R&D Tax Credit will give small and medium-sized businesses — whose R&D efforts are generally constrained by cash flow —better access to  R&D support than they have had with the R&D Tax Concession.

 

“By making the R&D incentive more attractive to small and medium-sized businesses the Government’s tax incentives will be distributed more fairly than has been the case under the current R&D Tax Concession. This will herald a new era of innovation, design and production.”

 

He said the legislation that will enable the R&D Tax Credit contains powers to make regulations and decision making principles, to assist with administration of the new scheme.

 

The decision-making principles relate to the circumstances in which the Innovation Australia Board may extend deadlines, review findings about R&D activities and core technology, and vary registrations.

 

The consultation documents are available at: www.innovation.gov.au/RDTaxCreditRegulations

 

Submissions are due by 5 August 2011.