23 Nov 1010 Research and Development Bills passed by House
On 22 November 2010, Tax Laws Amendment (Research and Development) Bill 2010 and Income Tax Rates Amendment (Research and Development) Bill 2010 were passed by the House of Representatives without amendment.
The Bills amend:
- ITAA 1997 to replace the existing research and development (R&D) tax concession with a 45% refundable R&D tax offset for eligible entities with a turnover of less than $20 million, and a non-refundable 40% R&D tax offset for all other eligible entities;
- Industry Research and Development Act 1986 to set out the role of Innovation Australia in relation to the administration of the R&D tax offset;
- ITAA 1936, ITAA 1997, Income Tax (Transitional Provisions) Act 1997 and Taxation Administration Act 1953 to make consequential amendments; and
- the Income Tax Rates Act 1986 to provide that the rate of additional income tax payable on all or part of a recoupment for research and development activities is 10%.
The Bills now proceed to the Senate.