Across the world, the consensus is growing that investment in research and development is the most effective way to build high-wage jobs in globally competitive firms.
Australia cannot hold back the tide of progress, but we have no reason to fear it will sweep us away. Our history confirms that we are a creative and resilient country. We have an outstanding reputation of discovery and invention. Today we are re-tooling our firms and re-skilling our workers to claim the jobs and opportunities our innovators can unlock.
The old R&D Tax Concession was a visionary reform in its day, but it failed to keep pace with the needs of modern business. Of the two million businesses in this country, a mere 8,500 firms registered to receive the benefits.
The Australian Government's new R&D Tax Incentive will allow us to spread the benefits of innovation to many more firms, in all industry sectors. It will support more firms, at a higher rate, at the time they need it most. It also overcomes the current confusion around eligible activities, with simpler and clearer criteria that reflect real-world business practice.
It is important that people who have been deterred by the complexities of the old program or simply never considered their R&D investment options look closely at the opportunities now available. They are generous and significant.
Information sessions held across Australia throughout September and October have already helped businesses learn how to access and best use the Incentive. A vodcast has been produced from the sessions, highlighting the importance of innovation to the Australian economy.
I am also pleased to endorse the release this month of an AusIndustry Discussion Paper that invites comment on a strategy to help firms understand and access their entitlements under the new scheme.
The opportunities are on the table for Australia - it is up to us to make the most of them.
Kim Carr
