The Federal Government’s move to encourage small to medium companies to invest in research and development has led to a jump in its R&D tax incentive payments.
In its economic update released today, the Government revealed the payments are expected to be $304 million higher than forecast in 2013-14, and $1.2 billion higher over the four years to 2016-17.
In February the Government cut access to the scheme for companies with more than $20 billion in annual turnover as part of a jobs plan more heavily focused on small business and startups.
The Government said the higher cost reflected a significant uptake in claims of the 45 per cent refundable tax offset for companies turning over less than $20 million. It also said it expected the higher level of claims would continue across the forward estimates.
Further refinements commencing from 1 July 2013 would ensure the incentive is targeted at small and medium companies more likely to undertake additional R&D as a result of the incentive, the Government said.
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Aug 2, 2013.