Over The Horizon

Aussie R&D Tax Break Doing Well

There will be a substantial drop in the cost of the 150% tax concession on private sector investment in research and development work carried out in Australia, according to papers recently released.

The scheme is estimated to cost the Australian Government $A368 million in 1993/94, compared with $A415 million in the previous financial year.

A Bureau of Economics report is expected to conclude that although the bulk of industrial R&D would still be carried out without the incentive of the tax concession, given its spill-over effects into economic activity the tax concession does lead to net benefits and is worth preserving, but there is no reason to lift the rate.

John Blakeley, Canterprise