Treasurer Josh Frydenberg oversees R&D tax incentive policies.Credit:Alex Ellinghausen
"Generous R&D tax incentive programs are available overseas and for Australia’s nearest neighbours Indonesia,Hong Kong and New Zealand,are seeing increased funding from governments with popular support from industry,"the census paper,based on the survey of 120 fintechs,states.
"Australia must be competitive in both its support for R&D and its R&D incentive administration."
At the start of 2019 thefederal government attempted to further tighten the incentives scheme, which gives offsets for spending on genuine research and development. The startup sector lobbied hard against the changes,which included introducing new caps on the offsets,and the plan ended up being put on ice after the government-led senate committee examining the bill suggested it needed further review.
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The legislation lapsed at the end of the last parliament and is yet to be re-introduced,a situation the census report said was"a positive result for fintechs,whose growth through on-shore R&D
investment will receive continued support from the R&D tax incentive."
Treasurer Josh Frydenberg told theSydney Morning Herald andThe Age reforms to the scheme have not been shelved for good.
"In response to the most recent review the government announced in the 2018-19 Budget a suite of changes to Australia's research and development tax incentive. The reforms sought to ensure that the incentive was more fiscally sustainable and rewards companies that invest more in R&D,"the treasurer said.