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BDO has issued strong support for the R&D Tax Incentive, but voiced concerns around possible areas of reform.
BDO's submission to the government's issues paper noted that the R&D Tax Incentive is a "well-constructed piece of legislation that encourages industry to undertake R&D activities that improve the competitiveness of Australian companies".
BDO R&D tax partner Nicola Purser said she understood the government’s desire to cut down costs, but hoped it would not be at the expense of weakening a successful programme.
“The R&D Tax Incentive achieves what it has been designed to [do], namely encouraging companies to undertake research and development that otherwise might not occur,” Ms Purser said.
“Although there are a few areas where costs could be reduced, we believe the incentive should be retained as it is."
Ms Purser made reference to overseas incentives for the Federal Government to consider when deciding on reform.
“The French system rewards industry partners for undertaking R&D projects in collaboration with public research organisations, by allowing businesses to claim 200 per cent of the costs invoiced by public research organisations – that is something that could be introduced here."
Ms Purser concluded: “Bringing in systemic compliance rather than the current reactionary response could also help streamline the process and reduce costs."