ARCHIVE - The Hon Ian Macfarlane MP was the former Minister for Industry, Tourism and Resources. The following media release was issued during his term as Minister. A new Government was sworn in by the Governor-General on 3 December 2007, including the following Ministerial appointments:
Senator the Hon Kim Carr - Minister for Innovation, Industry, Science and Research
The Hon Dr Craig Emerson MP - Minister for Small Business, Independent Contractors and the Service Economy, Minister Assisting the Finance Minister on Deregulation.
For media releases from the current term of Government, please visit http://minister.innovation.gov.au/Pages/default.aspx
Media Release
The Hon Ian Macfarlane, MP
8 May 2007
Changes to the research and development (R&D) tax concession, announced on 1 May 2007 by Prime Minister John Howard and Industry Minister Ian Macfarlane as part of the Howard Government's Industry Statement, will boost investment in Australian innovation by $1 billion and confirm Australia's status as a world leading investment location.
"Business spending on R&D is at record levels but we can still capture more investment in innovation," Mr Macfarlane said.
The beneficial ownership test for the 175 per cent Premium R&D Tax Concession will be changed to allow claims for R&D projects undertaken in Australia, regardless of where the intellectual property is held.
"This change is expected to result in an extra billion dollars of R&D investment in Australia over the next four to five years. It's predicted more than 300 companies will use the concession annually under this new arrangement," Mr Macfarlane said.
"The Australian arms of multinational enterprises account for a disproportionate share of manufacturing exports, jobs and R&D. The change to the 175 per cent concession will give those businesses a strong reason to expand their operations here. Their investment creates jobs, brings the latest technology to Australia and enhances the skills of our workforce.
"Australia benefits most from the new skills and commercial opportunities created by innovation undertaken in Australia. Income from patents and other intellectual property is important, but the spill-over benefits of skills and integration into global supply chains make a greater long-term contribution to our prosperity.
"While our opponents are determined to roll back the reforms responsible for a decade of prosperity and security in Australia, the Howard Government is rolling out policies to secure our long-term economic future," Mr Macfarlane said.
The change in the beneficial ownership test only applies to the 175 per cent concession. Access to the 125 per cent concession remains unchanged as removing the beneficial ownership test for the 125 per cent concession would reward businesses that do not increase R&D expenditure.
Limiting the change to the 175 per cent concession rewards businesses only to the extent that they increase their R&D.
For more information refer to the fact sheet at www.industry.gov.au.