A research and development incentive providing a 15 per cent tax credit to businesses that spend more than $50,000 on research and development has taken effect.
Legislation for the R&D tax credit has not officially passed into law as it’s still at the Finance and Expenditure Select Committee, but it will apply retrospectively from April 1, 2019, National Business Review reported.
Consultation took place last year, after Minister for Research, Science and Innovation Megan Woods and Revenue Minister Stuart Nash released a discussion document proposing changes aimed at raising the country’s R&D expenditure to 2 per cent of GDP over a 10-year period,
Businesses who contract out their R&D to approved research providers will be eligible for the tax credit, and the $50,000 threshold will not apply.
The measure took effect the same day the minimum wage increased from $16.50 to $17.70 an hour and ACC levies fell. The $1.20 increase marked the largest ever minimum wage rise, RNZ reported.
While the wage rise dominated the headlines, the R&D incentive was covered by:
RNZ: Superannuation and minimum wage go up tomorrow
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NZ Herald: The Front Page podcast: The euthanasia debate is about to start in earnest
NZ Herald: National reveals Govt advice on how a CGT potentially hinders business
NBR (paywalled): Employment changes ‘fishhooks’ for unaware businesses
NBR: (paywalled): Minimum wage warnings brushed off by Winston Peters
IT Brief: Callaghan Innovation grants Auckland SaaS firm $5m windfall