Ramanie Naidoo and Melissa Nikolic discuss key highlights from ISA’s 2017 Annual Report.
In December 2017, Innovation and Science Australia (ISA), formerly Innovation Australia, released its 2016-2017 Annual Report. It was with particular anticipation to see the results of the Research and Development (R&D) Tax Incentives program, following on from the recommendations made by an external panel regarding the program in 2016 (the 3F Report).
The key highlights from ISA’s 2017 Annual Report are:
It is pleasing to see this increase in R&D Tax Incentive Program participation and particularly from the SME sector. It will be interesting to monitor whether there will be an increase in reviews and other compliance activity by AusIndustry and the Australian Taxation Office (ATO) commensurate to this surge in uptake as described in the 3F Report. That review, which sought submissions from various stakeholders, concluded that this increased uptake may lead to a corresponding increase in compliance activity to ensure the program’s integrity.
Looking ahead, ISA’s recent publication entitled ‘Australia 2030 Prosperity through Innovation: A Plan for Australia to thrive in the global innovation race’ provides further insights into potential changes to the R&D landscape.