Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Better Targeting the Research and Development (R&D) Tax Incentive

Aust Gov
14th January 2020

Regulation Impact Statement – Department of the Treasury

On 5 December 2019, the Treasurer introduced the Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019, which implements a revised version of the Better targeting the research and development tax incentive measure announced in the 2018-19 Budget and introduced into the previous Parliament in September 2018.

The 2018 Bill was accompanied by a Regulation Impact Statement (RIS) that had been assessed by the Office of Best Practice Regulation (OBPR).

The new 2019 Bill contains amendments that respond to feedback from stakeholders and the findings of the Senate Economics Legislation Committee, which examined the 2018 Bill prior to the proroguing of Parliament and the consequent lapsing of the Bill. The changes compared to the 2018 Bill include a later application date and different assistance rates and thresholds for the intensity-based non-refundable R&D tax offset for large companies.

The Treasury and the Department of Industry, Innovation and Science prepared and certified a RIS for the revised measure, which the OBPR assessed as compliant with the Australian Government RIS requirements and consistent with best practice.

The RIS estimates the average annual regulatory costs at $26.3 million. The OBPR has agreed to the regulatory cost estimate.

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