Overview

Clauses 47, 243–247, 273, 279, 280, 284, 287, 296, 307, 325–329, 331, 336, 337, 339, 343, 424, 433, 466, 467, 474–476, 490, 491, 509 and 511

Since the introduction of this bill the R&D tax credit has been repealed and, as a result, a number of the provisions are no longer necessary. However, the credit continues to be administered for the year that it was in place (the 2008–09 year). Those making submissions have proposed remedial amendments and some possible enhancements to the tax credit covering eligibility issues, eligible expenditure, the repeal of the tax credit and administrative issues.

At the time the tax credit was repealed, the government signalled further work to align the tax credit legislation with the policy intention in a number of areas. This report recommends several amendments as a result of that work.

Several submissions propose other changes that would significantly broaden the scope of the credit for the year that it is in force. These are not supported in principle because there is no incentive effect in retrospectively broadening the provisions and it would merely create a windfall gain to taxpayers.