Following on from our last update in January, the draft legislation in this current form has stalled – again!
The proposed amendments to the R&D Tax Incentive legislation were passed in the House of Representatives on 10 February. The new legislation didn’t get passed the Senate, however, and the bill was instead referred to the Senate Economics Legislation Committee “to interrogate the potential impacts of the Bill, including its timing and the economic impacts of these reforms”.
It appears that the Senate is once again concerned about the impact of the proposed changes to the R&D Tax Incentive, considering that such changes are too important to get wrong. As a result, a review by the Senate Economics Legislation Committee will ensure the changes meet the stated aims of boosting R&D in Australia.
The Committee has welcomed submissions from the public and industry by 6 March 2020, and the Committee will then make its report on 30 April 2020.
All of this means we are potentially back to the drawing board, with the start date of 1 July 2019 for these retrospective changes now looking unlikely.
We would be happy to talk to you about your R&D plans in Australia, and how we can help you to reach your objectives for 2020 through international expansion. See Conduct R&D in Australia for more information on how CoSec can support your research and development plans in Australia.
Established in 2011, CoSec provides a full suite of incorporation and compliance and accounting services to support the successful expansion of offshore businesses into the Australian market.
Our capabilities include company incorporation, corporate compliance, accounting and tax support and outsourced CFO services. CoSec has offices in Melbourne, Sydney, Brisbane and Adelaide, with representatives based in San Francisco and London.