New research and development (R&D) tax credit legislation worth $1.5billion annually has just been introduced by the Federal Government and will be one of the most talked about initiatives at the upcoming Australian Innovation Exhibition in Brisbane.

Senator Kim Carr.

What this means for developing businesses, inventions and innovations will form part of the discussions at the Australian Innovation Exhibition's seminar sessions and business clinics  on July 26 and 27 at Brisbane Square.

Innovation and Industry Minister Kim Carr said the legislation would provide a significant boost to Australian businesses in support of their R&D efforts.

"The new scheme will stimulate more of Australia's two million businesses to undertake research and development rather than just the 8000 that benefit from the current concession," Senator Carr said.

The credit doubles the incentive for small and medium-sized businesses and increases big business incentives by a third, Mr Carr said.

From 2010-11, the Federal Government is replacing what Sen. Carr called the "complex and outdated R&D Tax Concession" with a simplified R&D Tax Credit which cuts red tape and provides a better incentive for business to invest in research and innovation.

He said the new R&D Tax Credit would better reflect the financial realities facing many businesses during the global recession.

The new Tax Credit provides a 45 percent refundable credit for firms with an annual turnover of less than $20 million -- equivalent to a Tax Concession of 150 percent. This means that firms will receive a tax refund of 45 percent of their R&D spending when they file their tax return.

A 40 percent non-refundable tax credit (the equivalent of a 133 percent tax deduction) will be provided to businesses with a turnover of $20million or more a year.

"This will make Australian companies more innovative, productive and prosperous and position them to create jobs for the future," Sen. Carr said.

The introduction of the legislation was welcomed by national industry body AusBiotech's chief executive Anna Lavelle.
http://www.minister.innovation.gov.au/

* The Australian Innovation Exhibition seminars and business clinics are free for those who pre-register through the event program at http://www.aust-innovate.com/

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