MEDIA RELEASE R&D reforms don’t go far enough While the recent changes to the R&D tax concessions are welcomed, there are a number of issues the government should consider to provide proper assistance to businesses according to a respected accounting and advisory firm. Marc Peskett, partner of Melbourne based MPR Group, says in light of the National Innovation Review, the recent changes by the government don’t quite go far enough to encourage further investment in the area. “R&D and the resultant technologies is one advantage our businesses have over many other countries in the world, and our tax regime needs to fully support this,” Mr Peskett says. “We are increasingly unable to compete internationally in areas such as manufacturing, however we have some of the brightest minds and innovative companies in the world. “The National Innovation Review set an appropriate benchmark, now it’s time we ensured its recommendations are considered fully.” Two areas Mr Peskett suggest need revisiting are quarterly rebates and the time frame for the introduction of new measures. “One of the main issues for most start-ups and high growth companies is cash flow,” Mr Peskett says. “We need to provide for quarterly R&D rebates to match company cash flow needs as this might be the difference between their survival or failure. “The move not to introduce the new measures until the 2010/11 financial year could also contradict the government’s attempts to encourage immediate R&D activity, as many businesses may trade off the immediate benefit by deferring expenditure until a later date in order to maximise their return.” Mr Peskett says a higher tax credit of 50 percent should also be considered. ENDS For all media enquiries contact Bruce Nelson on 0423 403 449.
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