The purpose of this paper is to highlight key questions on the implementation of the government’s 2018-19 Budget measure – ‘Better targeting the research and development tax incentive’. The government is seeking stakeholder feedback on the implementation of this measure, specifically:
The calculation of R&D intensity under the R&D premium; and
The process for implementing a ‘clinical trials’ exemption under the $4 million cap on annual cash refunds.
Comments on other matters in the draft Bill and Explanatory Materials are also welcome.
The outcomes of this consultation will feed into the finalisation of legislation required to implement this measure. Interested parties are invited to submit their responses to the discussion questions in the document, which have also been reproduced at Appendix A.
The principles outlined in this paper have not received government approval and are not yet law. As a consequence, this paper is merely a guide as to how the principles might operate.