06 Apr 10 R&D Tax Incentive - Second Exposure Draft Legislation
In joint media release No 2010/18, issued on 31 March 2010, the Treasurer Wayne Swan, and the Innovation Minister, Senator Kim Carr, announced the release of a second exposure draft of the legislation for the new R&D tax incentive.
"In light of the feedback received on the exposure draft legislation released in December 2009, the Government has adopted a range of changes to make the legislation clearer and align more closely with the stated intent of the policy," Senator Carr said.
The modifications to the legislation include a revised definition of core R&D that uses clearer language and dispenses with a range of overlapping tests. The Government has also decided not to extend the exclusions list to supporting activities and to narrow the scope of activities to which the new dominant purpose test will apply.
"After close consideration of the new tests for core and supporting R&D and detailed consultations, we have concluded that the augmented feedstock rules should not be necessary," Senator Carr said.
The Government still expects the new R&D tax incentive to start from 1 July 2010. Legislation for the new scheme will be introduced in the next sittings of Parliament. Submissions on the draft are required by Monday, 19 April 2010.