Regulation Impact Statement – Department of Industry, Innovation and Science
On 20 September 2018, the Government introduced legislation to better target the Research and Development Tax Incentive (R&DTI).
The R&DTI reduces the costs to business of undertaking R&D by offering a tax offset for their eligible R&D activities. The R&DTI aims to increase investment in business R&D beyond that which companies would do on their own. The program recognises that businesses are likely to underinvest in R&D as they are unable to capture all the benefits of R&D that ‘spillover’ to the rest of the economy.