Government R&D goal welcomed

Government R&D goal welcomed

Wellington Chamber of Commerce has welcomed the release of the Government’s discussion document on Research and Development Tax Incentives.

The Government is proposing a system of 12.5% tax refunds on company investment in R&D for expenditure over $100,000 a year. The system would work in tandem with the R&D grants administered by Callaghan Innovation, and would replace the current Callaghan Growth Grants.

"We’re encouraged that the coalition Government is looking at how this can best benefit industry and move towards a higher-innovation economy," says John Milford, Chief Executive Wellington Chamber of Commerce.

"There’s no question that New Zealand has got to improve our share of R&D - currently it’s 1.28 percent of GDP, compared to an OECD average of 2.38 per cent.

"But of course it’s always a question of what we do and how we do it.

"We need to make sure whether a tax incentive system would be easier or harder to navigate than the current system of Growth Grants, especially for SME’s.

"Consultation with industry, employers and manufacturers will be critical to the success achieving the Government’s goal of hitting 2 per cent. We really encourage our members to get involved in this process and have their say."

ENDS

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