Tax Concessions For Adoption Of Innovation
http://aussieinnovation.com/wiki/Tax_Concessions_For_Adoption_Of_Innovat...
This Submission is directed at encouraging Australian Government and private industry to undertake the early adoption of local innovations through a new tax concession scheme.
In the first model of the proposed scheme, private industry is given a 125% tax break for investment in an Australian developed product or solution that qualifies for an “Accredited Innovation Product or Solution”. There would be a fixed period, say 5 years, during which the accreditation is valid.
In the second model, a graduated scale is used with 175% deduction in the first year, followed by 150% in the second and 125% in the last three years.
For Government Departments and Organisations, the incentive could be in the form of a Budget Bonus of 25% on all Innovation Accredited expenditure. Similarly, my second model could also be adapted for Government.
There is also a very interesting submission from Professor Joshua Gans that touches on some similar ideas.
http://www.innovation.gov.au/innovationreview/Documents/70-Joshua_Gans.p...
He covers a broader range of issues that relate to innovation in Australia and has some alternative models as well.
