Government to cut R&D incentive for big business

The Coalition government will go ahead with Labor’s proposed change to the R&D tax concession to exclude businesses with incomes over $20 billion in Australian turnover.

This will mainly impact the major banks and mining companies.

The government also plans to reassess the bill to introduce quarterly payments for R&D tax incentives for small to medium-sized businesses. This Bill has been included on a ‘yet to be determined’ list.

A number of measures have been added to this yet to be determined list and will be subject to a consultation process in future weeks.

Legislation was previously introduced into parliament to enact both measures but the original Bill lapsed when the former parliament rose in August 2013.

The announcement was made as part of a package dealing with 92 unlegislated tax and superannuation policy proposals, including vetoing the cap on self-education expenses.

The legislation is expected to be passed by the parliament by 1 July 2014.