Malcolm Turnbull should abandon his cut to the R&D Tax Incentive if he is serious about promoting innovation in Australia.
Since the 2014 Budget, while Malcolm Turnbull sat in Tony Abbott’s Cabinet supporting cuts to the R&D Tax Incentive, Labor has been standing up for Australia’s innovative companies and opposing this short-sighted measure.
The Liberals’ plan would see the rate of the R&D Tax Incentive reduced from 40 per cent to 38.5 per cent for large companies, and from 45 per cent to 43.5 per cent for companies with turnover under $20 million.
This legislation has a retrospective application date of 1 July 2014, meaning it is affecting companies’ R&D investment decisions right now.
Labor has already defeated this reckless policy once in the Senate, but the Liberals have brought it back for a second time.
Now the legislation is languishing on the Notice Paper because the Liberals know they don’t have the numbers to cut support for R&D.
But they still haven’t said they are withdrawing the proposal.
If Malcolm Turnbull and Christopher Pyne were serious about supporting Australian innovation and industry R&D, they would immediately reverse this measure.
If they don’t, they’ll be showing once again that when it comes to innovation, the Liberals are all talk and no action.
For more information about Labor’s plan for innovation visit www.futuresmartaustralia.org