New era for research and development in New Zealand
Increasing the level of private research and development will become that much easier because of a Labour-led government tax credit initiative which comes into effect on 1 April, Research, Science and Technology Minister Pete Hodgson said today.
Pete Hodgson made his comments during a visit to Australo, a Dunedin nanotechnology company. Australo have developed ground-breaking nanopore technology that has a broad range of applications, including diagnosis of cancer, viruses and other diseases.
“From April 1, businesses investing in research and development can earn a 15 per cent tax credit on that spending. It is estimated that the credit will be worth $630 million for business over the next four years.
“Australo is a great example of an innovative New Zealand company, developing world-leading technology. The ability to support research and development in companies such as this is really exciting,” said Pete Hodgson.
“While public sector spending is about 75 per cent of the Western world average, private sector spending is only about a third. However, private sector investment has been growing quickly in recent years, and from 1 April will grow faster still.
“This tax incentive will give businesses the ability to invest in their own research or to commission third party research providers to support their growth. It will enable small business to start investing in R&D, and allow larger companies to expand on what they already do.
“While providing a significant financial boost for business, the credit will also stimulate the links between business and researchers. Extracting maximum value from the intellectual capital sitting within our research organisations is a must for the economy.”
The R&D tax credit, which was announced during the budget last year, is a long-term commitment to investing in New Zealand’s future through innovation, research and development.
“This tax credit, along with the recently announced $700 million New Zealand Fast Forward initiative, will ensure that New Zealand businesses and industry remain at the forefront of innovation world-wide.”