Proposals to change the Research and Development Tax Incentive have been around for a while – the Review of the Three Fs (Bill Ferris, Alan Finkel, John Fraser) which started it was written in Old Norse
Nothing much happened until it was translated but in 2018 savings to the scheme were in the budget. However, they never made it through the Senate, with the legislation being sent to a committee which in February 2019 concluded more consideration was needed. Perhaps they did not like the translation. (CMM December 9 2019).
The bill lapsed at last year’s election, but Treasurer Josh Frydenberg brought forth a new version on the last sitting day of 2019. This one is intended to reduce the application of the incentive and save the taxpayer $1.8bn over the forward estimates. And it might do just that, if it ever passes the Senate.
But it won’t this side of the budget. A learned reader points out the Senate Economics Legislation Committee now has an October 12 deadline for this Beowulf of a bill.