The Australian Information Industry Association has urged the Federal Government to drop its plans for changing the research and development tax incentive scheme as the result of the coronavirus pandemic which is largely affecting small- and medium-sized enterprises.
The head of Australia's national start-up advocacy group has described Tuesday's Federal Budget as a "missed opportunity" to provide strategic vision on the role that technology will play in Australia's economy.
The Federal Government has cut another $1.35 billion from its research and development tax incentive over the forward estimates, according to the Budget papers.
The Coalition Government's approach to the R&D Tax Incentive in last night's Federal Budget mirrors its approach to every other sector or section of society: take from the poor, give to the rich.
The Australian Information Industry Association has expressed concerns over changes to the R&D Tax Incentive in the Federal Budget, saying that they could put the brakes on innovation by discouraging companies from local investment.
The federal government has made changes in the R&D Tax Incentive which will hit both big and small businesses, the latter to a larger extent, with the Federal Budget aiming to save $2.4 billion on the scheme over the next four years.
A number of ICT firms have expressed fears that the federal government may change the R&D Tax Incentive in Tuesday's budget, making their existence in Australia that bit more difficult.
The Australian Government has been urged not to trade off short-term budget savings for the country's long-term prosperity by making changes to the $3 billion R&D Tax Incentive and restricting claims for software R&D.
Australia’s start-ups have had a record year in the 2017 financial year, with the industry raising a record $1.32 billion in venture capital and predicted to have the potential to contribute as much as $170 million to the economy by 2020.
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