MJA's managing director, Kris Gale, was quoted in the business section of today's Australian outlining his concerns. In an article entitled "Big trouble in small business: R&D tax incentives", MJA's Gale says:
"These changes will (affect) technology start-ups more than large companies, which only spend 1 per cent to 2 per cent of their operating budgets on research compared to 30 per cent to 40 per cent for small companies, which are focused almost entirely on commercially ready R&D"
"Companies will need to divert extra resources to prepare their claims and that is an increased compliance burden and a diversion away from what they are trying to focus on. There is universal agreement that this will add complexity"
"The jaundiced view is that the legislation is already written and Treasury is just paying lip service to business views"
"Although small business and tax specialists say the R&D tax credit has the potential to significantly help small business, it will need to be refined to do so"
"If not, it runs the risk of leaving us with a lame duck program and all the uncertainty that presents"
To read the article in full go to The Australian website.
Further information on the proposed R&D Tax Credit and MJA's submission to the consultation process can be found on the MJA website.
