The Government are putting $1 billion towards a tax incentive scheme to boost research and development.
"This is a huge opportunity for businesses to invest in research and development, which will help us increase our productivity and boost wages," Research, Science and Innovation Minister Megan Woods said today.
Ms Woods said the Government ran a thorough consultation process, "and as a result we have made significant changes to the tax incentive originally proposed".
"The rate will be higher, the threshold lower, and the definition more inclusive."
However, National say the policy is "short on details".
"The scheme has to be more than just a bonanza for tax consultants."
"Changes in this version of the policy, including dropping the R&D spending threshold to $50,000 from $100,000 and what appears to be an expansion of eligible organisations, won’t come without extra cost yet the Government still claims it will cost $1 billion over four years."
All businesses, including those owned by the state, will be eligible for the tax credits.
Revenue Minister Stuart Nash said business feedback was received showing it was important "to include a form of refundable tax credits for start-ups and loss making businesses in the first year of the tax incentive".
"This is why we have introduced a temporary measure that will mirror the current R&D tax-loss cash-out scheme."
NZ First deputy leader Fletcher Tabuteau said the coalition document specified an attempt to raise research and development spending to two per cent of GDP over 10 years, and that the key components of today's announcement were:
SHARE ME