The government has released its Strategic Examination of R&D discussion paper, prepared by the panel members announced in December, led by Tesla chair, Robyn Denholm.
Initially described as a strategic review of the R&D Tax Incentive, which hasn't been updated in almost a decade, Minister for Industry and Science, Ed Husic, said it would be more comprehensive, with its goal being to reshape Australia’s R&D performance to help power economic growth.
Key priorities from the review include achieving more value from investment in research across universities, industry and government, harnessing and growing business investment in R&D, and leveraging scientific strengths to help address national priorities and foster new industries.
Prepared by the review panel, including Chair of the Health and Medical Advisory Group Emeritus Professor Ian Chubb, Director of Royal Perth Hospital Burns Unit Professor Fiona Wood, and LaunchVIC CEO Dr Kate Cornick, the discussion paper outlines the current state of Australia’s R&D landscape.
It also includes information on upcoming webinars and opportunities to submit feedback through the Department of Industry, Science and Resources (DISR) consultation hub as the panel gathers supporting research and analysis. To view the discussion paper, make a submission, or register for information sessions and roundtables, head to the Department of Industry website here.
Some industry voices have already publicly shared opinions on the review in response to the discussion paper, with Business Council of Australia CEO, Bran Black, stating companies are being held back from research and development activity by policy that doesn’t do enough to encourage innovation or large-scale business investment.
“The R&D expenditure threshold should be abolished or at a minimum increased to $250 million and indexed,” said Black.
“We need to create market incentives for non-taxpayer funded research, so businesses aren’t actively disincentivised from doing more R&D in Australia. Abolishing the R&D expenditure threshold would create a better incentive for investment and help Australia catch up to the rest of the world.”
Consulting with industry, universities, peak bodies, First Nations people, and the public, the strategic examination will report its findings and an action plan to the government by the end of 2025. Further details and progress updates can be found here.
