LABOR REFUSES TO CHANGE REGRESSIVE WAYS ON R&D
22-November-2010
22 November 2010
The Coalition today offered the Federal Parliament a way out of a protracted quagmire on changes to business research and development (R&D) tax incentives – but Labor again refused to listen.
In the House of Representatives, the Government voted against a series of amendments that were designed to help broker a practical and workable end to the year-long impasse.
This approach maintains its pattern of repeated intransigence, and its stubborn refusal to countenance criticism of its plans to gut support for R&D investment in Australia.
Through the amendments to the Tax Laws Amendment (Research and Development) Bill 2010, the Coalition signalled its support for key changes such as a shift from a concession to a credit-based system.
But the amendments were also aimed at redressing the worst elements of Labor’s proposals, such as the attempt by Innovation Minister Kim Carr to abandon internationally-understood definitions of R&D and introduce a confusing and subjective ‘dominant purpose’ test.
Collectively, they gave expression to changes that have repeatedly been advocated by a cross-section of stakeholders so broad that it even brings groups like the Australian Chamber of Commerce and Industry, Australian Industry Group and Australian Manufacturing Workers Union under the same umbrella.
However, Labor clearly remains determined to continue using the smokescreen of increases in payment rates under the new legislation to disguise its real agenda to stop many firms from qualifying for support in the first place.
It is also continuing to hide behind the line that the changes are ‘revenue neutral’ while refusing to release modelling that verifies this extraordinarily unlikely claim.
As its own handpicked expert on innovation, Dr Terry Cutler, has observed, Labor has utterly lost its way when it comes to innovation policy.
With the Coalition’s help and guidance, it could have today started out on the long road back to credibility.