The government had planned to make the series of retrospective changes to the research and development tax incentive (RDTI) to apply from 1 July 2018. The Economics Legislation Committee, chaired by Liberal Senator Jane Hume, tabled its unanimous report on the legislation provisions surrounding the R&DTI after a four-month inquiry.
In its report on the Treasury Laws Amendment bill containing the changes, the government-led committee recommended the Senate “defer consideration” of the bill until “further examination and analysis of the impact is undertaken”. With just two sitting weeks left until the May 2019 federal election, it’s all but certain that the changes will not be passed before a potential change in government, assuming the Coalition accepts its own recommendations.
The legislation has not been listed for debate by the government during the first sitting days of the year this week. Through three public hearings and 75 submissions, the Senate committee received an overwhelmingly negative response to the proposed changes, with concerns they would force companies to relocate overseas.
While we welcome the report and findings, we are looking forward to knowing what, if any, changes will be implemented so we can begin to communicate with our clients. Once we have an update we will share more information.