Government risks killing R&D
THE government risks sending investment overseas if it accepts the advice of a high-powered panel and tightens up corporate tax breaks for research and development, executives have warned.
As Labor looks to fund assistance for loss-making small businesses in the budget, it is understood a panel reporting to the Treasurer has flagged changes to the multi-billion R&D tax incentive.
Pharmaceutical, infrastructure and mining companies are among the biggest users of the tax break, which gives companies with turnover of more than $20 million a 40 per cent tax offset for research and development spending.
But with other countries fighting to attract innovation spending, executives have warned that cutting the incentive could force companies to take their capital elsewhere.
The chief financial officer of medical product manufacturer ResMed, Brett Sandercock, said the company had built up its research team on the understanding it could claim the incentive.
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