Footnotes

Summary and Recommendations

[1]        Senator the Hon Kim Carr, Minister for Innovation, Industry, Science and Research, Senate Economics Committee Hansard, 31 May 2010, p. 51.

Chapter 1 - Tax Laws Amendment (Research and Development) Bill 2010 Income Tax Rates Amendment (Research and Development) Bill 2010

[1]        Dr Craig Emerson MP, Minister for Small Business, Independent Contractors and the Service Economy, Second Reading Speech, House of Representatives Hansard, 13 May 2010, p. 1.

[2]        Second Reading Speech, House of Representatives Hansard, 13 May 2010, pp 1-2.

[3]        Second Reading Speech, House of Representatives Hansard, 13 May 2010, p. 2.

[4]        The Treasury and Department of Innovation, Industry, Science and Research, Joint Submission, 20 May 2010, p. 3.

[5]        Second Reading Speech, House of Representatives Hansard, 13 May 2010, p. 2.

[6]        Second Reading Speech, House of Representatives Hansard, 13 May 2010, p. 2.

[7]        Senate Selection of Bills Committee, Report No. 7 of 2010, 13 May 2010, Appendix 7.

Chapter 2 - Research and Development Tax Incentive

[1]        Section 73B(1AAA), Income Tax Assessment Act 1936.

[2]        Following the announcement of the changes in the 2009-10 federal budget the Government increased this grouped expenditure threshold to $2 million for the 2009-10 income year.

[3]        AusIndustry and Australian Taxation Office, Guide to the R&D Tax Concession, Part A, Version 4.3, February 2010, p. 9.

[4]        AusIndustry and Australian Taxation Office, Guide to the R&D Tax Concession, Part A, Version 4.3, February 2010, p. 11.

[5]        The Hon. Senator Kim Carr, Minister for Innovation, Industry, Science and Research, Senate Estimates Hansard, 31 May 2010, p. 51.

[6]        Explanatory Memorandum, Tax Laws Amendment (Research and Development) Bill 2010, para 1.6, p. 12.

[7]        Explanatory Memorandum, p. 12.

[8]        The after tax benefit is the value of the additional deduction, ie the additional 50 per cent where the deduction was 150 per cent of expenditure. For example, in 1988 the applicable tax rate was 49 per cent meaning business deductions would be worth 49 cents, however, if the deduction were for R&D expenditure, the entity would be able to claim a deduction for one and a half times the actual expenditure, the result being that the company would receive an additional 24.5 cent (49/2) deduction for their actual expenditure.

[9]        AusIndustry and Australian Taxation Office, Guide to the R&D Tax Concession, Part B – Research and Development Activities, Version 4.2, July 2008, p. 6.

[10]      AusIndustry and Australian Taxation Office, Guide to the R&D Tax Concession, Part B – Research and Development Activities, Version 4.2, July 2008, p. 14.

[11]      AusIndustry and Australian Taxation Office, Guide to the R&D Tax Concession, Part B – Research and Development Activities, Version 4.2, July 2008, p. 14.

[12]      AusIndustry and Australian Taxation Office, Guide to the R&D Tax Concession, Part B – Research and Development Activities, Version 4.2, July 2008, p. 19.

[13]      Explanatory Memorandum, para 5.21, p. 122.

[14]      Explanatory Memorandum, p. 123.

[15]      Explanatory Memorandum, para 5.5, p. 118.

[16]      Senator the Hon Kim Carr and the Hon Wayne Swan MP, New R&D tax credit – exposure draft legislation, Media Release, 18 December 2009.

[17]      The Treasury, The new research and development tax incentive – Consultation guide – a second exposure draft, March 2010, p. 1.

[18]      Productivity Commission, Public Support for Science and Innovation, March 2007, pp 392 and 403.

[19]      Productivity Commission, Public Support for Science and Innovation, March 2007, p. 390.

[20]      How R&D Assistance Influences Company Behaviour: A survey investigating behavioural additionality effects of the R&D Tax Concession Program, p. 16; http://www.innovation.gov.au/Section/Innovation/Documents/RDbehaviour200720071024131738.pdf.

[21]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Australian Manufacturing: Today and Tomorrow, July 2007, pp 141-2.

[22]      Venturous Australia, 2008, pp xiii-xiv.

[23]      Report on Australia's Future Tax System, p. 168.

[24]      Report on Australia's Future Tax System, p. 168.

[25]      G Davis and G Tunny, 'International comparisons of research and development', Economic Roundup, Spring 2005.

[26]      Medicines Australia, Answers to questions on notice, p. 2.

[27]      James Dyson, Ingenious Britain: Making the UK the Leading High Tech Exporter in Europe, 2010, pp 52-53.

Chapter 3 - The Economics of Innovation and R&D

[1]        Cited by House of Representatives Standing Committee on Economics, Inquiry into Raising the Productivity Growth Rate in the Australian Economy, April 2010, p. 14.

[2]        House of Representatives Standing Committee on Economics, Inquiry into Raising the Productivity Growth Rate in the Australian Economy, April 2010, p. 19.

[3]        House of Representatives Standing Committee on Economics, Inquiry into Raising the Productivity Growth Rate in the Australian Economy, April 2010, pp iii-iv.

[4]        Dr Christopher Roberts, Cochlear, Proof Committee Hansard, 21 May 2010, p. 11.

[5]        Professor Roy Green, Proof Committee Hansard, 21 May 2010, p. 18.

[6]        Venturous Australia, 2008, p. vii.

[7]        Productivity Commission, Public Support for Science and Innovation, 2007, p. 7.

[8]        Mr Innes Willox, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 2.

[9]        Productivity Commission, Public Support for Science and Innovation, 2007, p. xvii.

[10]      Professor Roy Green, Proof Committee Hansard, 21 May 2010, p. 18.

[11]      G Davis and G Tunny, 'International comparisons of research and development', Economic Roundup, Spring 2005, pp 74-77.

[12]      ABS, Research and Experimental Development, Businesses 2007–08, cat. no. 8104.0, p. 32.

[13]      Michael Johnson Associates, Submission 5, Attachment B, p. 7.

[14]      Mr Innes Willox, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 2.

[15]      Ms Deborah Monk, Medicines Australia, Proof Committee Hansard, 20 May 2010, p. 9.

[16]      Cited by House of Representatives Standing Committee on Economics, Inquiry into Raising the Productivity Growth Rate in the Australian Economy, April 2010, p. 49.

[17]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Australian Manufacturing: Today and Tomorrow, July 2007, pp 140; ABS, Research and Experimental Development, All Sector Summary, Australia, 2006-07, cat. no. 8112.0.

[18]      G Davis and G Tunny, 'International comparisons of research and development', Economic Roundup, Spring 2005, p. 63.

[19]      Cited by House of Representatives Standing Committee on Economics, Inquiry into Raising the Productivity Growth Rate in the Australian Economy, April 2010, p. 49.

[20]      J Sheehan  and A Wyckoff, ‘Targeting R&D: economic policy implications of increasing R&D spending’, STI Working Papers, no. 2003/8, OECD: Paris.

[21]      Productivity Commission, Public Support for Science and Innovation, 2007, p. 43.

[22]      Mr Gary Banks, Chair, Productivity Commission, cited in House of Representatives Standing Committee on Science and Innovation, Riding the Innovation Wave: the Case for Increasing Business Investment in R&D, June 2003, p. 12.

[23]      G Davis and G Tunny, 'International comparisons of research and development', Economic Roundup, Spring 2005.

[24]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Australian Manufacturing: Today and Tomorrow, July 2007, pp 141-2.

[25]      Michael Johnson Associates, Submission 5, Attachment B, p. 4.

[26]      KPMG, Submission 9, p. 13.

[27]      Dr Brendan Shaw, Chief Executive Officer, Medicines Australia, Proof Committee Hansard, 20 May 2010, p. 2.

[28]      Ms Deborah Monk, Medicines Australia, Proof Committee Hansard, 20 May 2010, p. 8.

[29]      House of Representatives Standing Committee on Economics, Inquiry into Raising the Productivity Growth Rate in the Australian Economy, April 2010, p. 3.

[30]      J Haskell and G Wallis, 'Public support for innovation, intangible investment and productivity growth in the UK market sector', Imperial College Business School discussion papers, no. 2010/01, February 2010, p. 21.

[31]      N Bloom, R Griffith and J van Reenen, 'Do R&D tax credits work? Evidence from a panel of countries 1979-1997', Journal of Public Economics, vol 85, issue 1, July 2002, p. 1.

[32]      G Davis and G Tunny, 'International comparisons of research and development', Economic Roundup, Spring 2005, p. 73.

[33]      Department of Industry, Tourism and Resources, How R&D Assistance Influences Company Behaviour, July 2007.

Chapter 4 - Criteria for Evaluating R&D Assistance

[1]        Bill, p. 5; amending subdivision 355-A.

[2]        Among prominent economists to have developed this idea of spillovers are Alfred Marshall, Paul Romer and Kenneth Arrow.

[3]        Letter to Isaac McPherson, 1813.

[4]        Zvi Griliches, 'The search for R&D spillovers', Scandinavian Journal of Economics, no 94, 1992, p. 29.

[5]        Ms Deborah Monk, Medicines Australia, Proof Committee Hansard, 20 May 2010, p. 8.

[6]        Australian Industry Group, Submission 19, pp 3-4. Similar comments were made by their representative Mr Innes Willox, Proof Committee Hansard, 21 May 2010, p. 2.

[7]        Mr Ken Pettifer, Head of Innovation Division, Department of Innovation, Industry, Science and Research, Proof Committee Estimates Hansard, 31 May 2010, p. 55.

[8]        Mr Innes Willox, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 2.

[9]        L Georghiou and B Clarysse, 'Introduction and synthesis', in Government R&D Funding and Company Behaviour, OECD, 2006, p. 11.

[10]      Productivity Commission, Public Support for Science and Innovation, 2007, p. 65.

[11]      Hon Kim Carr, Minister for Innovation, Industry, Science and Research, Proof Committee Estimates Hansard, 31 May 2010, p. 65.

[12]      Mr Kris Gale, Managing Director, Michael Johnson Associates, Proof Committee Hansard, 20 May 2010, p. 28.

[13]      Professor Roy Green, Proof Committee Hansard, 21 May 2010, p. 19.

[14]      Professor Roy Green, Proof Committee Hansard, 21 May 2010, p. 22.

[15]      James Dyson, Ingenious Britain: Making the UK the Leading High Tech Exporter in Europe, 2010, p. 54; cited by Professor Roy Green, Proof Committee Hansard, 21 May 2010, p. 19.

[16]      Mr Weber, Department of Innovation, Industry, Science and Research, Proof Committee Estimates Hansard, 31 May 2010, p. 65.

[17]      Mr Robin Parsons, Partner, Indirect Tax, Ernst & Young, Proof Committee Hansard, 20 May 2010, p. 14.

[18]      Mr Kris Gale, Managing Director, Michael Johnson Associates, Proof Committee Hansard, 20 May 2010, p. 31.

[19]      AusBiotech, Submission 1, pp 1-2.

[20]      Venturous Australia, 2008, p. 104.

[21]      Mr Paul McCullough, General Manager, Business Tax Division, Proof Committee Hansard, 20 May 2010, p. 46.

[22]      Productivity Commission, Cited by House of Representatives Standing Committee on Economics, Inquiry into Raising the Productivity Growth Rate in the Australian Economy, April 2010, p. 127.

[23]      J Haskell and G Wallis, 'Public support for innovation, intangible investment and productivity growth in the UK market sector', Imperial College Business School discussion papers, no. 2010/01, February 2010, p. 21.

[24]      Productivity Commission, Public Support for Science and Innovation, March 2007, p. 73.

[25]        CSIRO, cited in Productivity Commission, Public Support for Science and Innovation, March 2007, p. 384.

[26]      Mr Serge Duchini, Partner, Deloittes, Proof Committee Hansard, 21 May 2010, p. 33.

[27]      Another form of support without a budgetary cost is allowing companies monopoly rights (patents) for limited periods over innovation arising from their R&D.

[28]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Australian Manufacturing: Today and Tomorrow, July 2007, pp 153-4.

Chapter 5 - Eligible Expenditure

[1]        Productivity Commission, Public Support for Science and Innovation, 9 March 2007, p. 8.

[2]        Explanatory Memorandum, Tax Laws Amendment (Research and Development) Bill 2010, para 1.1, p. 11.

[3]        Proposed sections 355-1, 355-20 and 355-35, Tax Laws Amendment (Research and Development) Bill 2010, pp 4-7.

[4]        And that foreign country has a double tax agreement with Australia.

[5]        Notional deductions — a notional deduction is an amount that an R&D entity would otherwise deduct for business expenditure if they were not eligible for the R&D tax offset.

[6]        Explanatory Memorandum, para 3.10, p. 51.

[7]        Explanatory Memorandum, para 1.28, p. 15. An R&D entity can obtain an offset regardless of the level of its R&D deductions for expenditure incurred to a Research Service Provider or for expenditure incurred as a monetary contribution to a Cooperative Research Centre. An RSP provides services in one or more specified research fields to registered R&D entities. A CRC is an organisation formed through medium to long term collaborative partnerships between publicly funded researchers and end users. Source: Explanatory Memorandum, pp 59 and 98. RSPs and CRCs are not covered in detail in the Committee's report.

[8]        Explanatory Memorandum, para 2.2, p. 19.

[9]        Dr Peter Burn, Director, Public Policy, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 7.

[10]      Dr Chris Roberts, Chief Executive Officer, Cochlear, Proof Committee Hansard, 21 May 2010, p. 11.

[11]      Mr Geoff Stearn, GSM Consulting, Submission 7, p. 1.

[12]      NOAH Consulting, Submission 8, p. 2.

[13]      Mr Serge Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, p. 32.

[14]      Mr Kris Gale, Managing Director, Michael Johnson and Associates Pty Ltd, Proof Committee Hansard, 20 May 2010, pp 32 and 35.

[15]      Tax Laws Amendment (Research and Development) Bill 2010, lines 12–21, p. 5.

[16]      Dr Peter Burn, Director, Public Policy, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 3.

[17]      Dr Chris Roberts, Chief Executive Officer, Cochlear, Proof Committee Hansard, 21 May 2010, p. 14.

[18]      Mr Serge Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, p. 34.

[19]      Mr Paul McCullough, General Manager, Business Tax Division, Treasury, Proof Committee Hansard, 20 May 2010, p. 48.

[20]      The Frascati Manual, a publication developed by the OECD in Frascati, Italy in 1963, is a technical document that is viewed as the 'cornerstone' of OECD efforts to increase the understanding of the role played by science and technology by analysing national systems of innovation. As it provides internationally accepted definitions of R&D and classifications of its component activities, it contributes to intergovernmental discussions on best practice for science and technology policies. Source: Frascati Manual – Proposed Standard Practice for Surveys on Research and Experimental Development, OECD, 2002, p. 3.

[21]      Experimental development is defined by the Frascati model as systematic work, drawing on existing knowledge gained from research and/or practical experience, which is directed to producing new materials, products or devices, to installing new processes, systems and services, or to improving substantially those already produced or installed. Source: Dr Peter Burn, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 2.

[22]      Section 73B(1) Definitions, ITAA 1936.

[23]      Section 73B(2B), ITAA 1936.

[24]      Mr Paul McCullough, General Manager, Business Tax Division, Department of the Treasury, Proof Committee Hansard, 20 May 2010, p. 47.

[25]      Which requires activities to be systematic and investigative, involve appreciable novelty or high levels of technical risk or be conducted for the purpose of acquiring new knowledge or information or for creating new or improved materials, products, devices, processes or services.

[26]      Mr Paul McCullough, General Manager, Business Tax Division, Department of the Treasury, Proof Committee Hansard, 20 May 2010, p. 47.

[27]      Dr Peter Burn, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 6.

[28]      Dr Chris Roberts, Cochlear, Proof Committee Hansard, 21 May 2010, p. 16.

[29]      Mr Innes Willox, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 2.

[30]      Professor Roy Green, Dean, Faculty of Business, University of Technology Sydney, Proof Committee Hansard, 21 May 2010, pp 19 and 22.

[31]      Mr Serge Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, p. 33.

[32]      Mr Paul McCullough, General Manager, Business Tax Division, Department of the Treasury, Proof Committee Hansard, 20 May 2010, p. 47.

[33]      Mr Ken Pettifer, Head of Division, Innovation Division, Department of Innovation, Industry, Science and Research, Letter to Committee, 8 June 2010, p. 1.

[34]      Professor Roy Green, Dean, Faculty of Business, University of Technology Sydney, Proof Committee Hansard, 21 May 2010, p. 19.

[35]      Productivity Commission, Public Support for Science and Innovation, 9 March 2007, p. 10.

[36]      Productivity Commission, Public Support for Science and Innovation, 9 March 2007, p. 11.

[37]      Mr Andrew Mihno, Deputy Executive Officer, International and Capital Markets Division, Property Council of Australia, Proof Committee Hansard, 21 May 2010, p. 41.

[38]      Mr Serge Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, pp 33–34.

[39]      Sections 355-25 and 355-30 of Tax Laws Amendment (Research and Development) Bill 2010, pp 6–7.

[40]      Subsection 355-25(2), Tax Laws Amendment (Research and Development) Bill 2010, p. 6.

[41]      Mr Paul McCullough, General Manager, Business Tax Division, Department of the Treasury, Proof Committee Hansard, 20 May 2010, p. 47.

[42]      Mr David Oliver, National Secretary, Australian Manufacturing Workers Union, Proof Committee Hansard, 21 May 2010, p. 23.

[43]      Mr Ken Pettifer, Head of Division Innovation Division, Department of Innovation, Industry, Science and Research, Letter to Committee, 8 June 2010, p. 2.

[44]      Mr Kris Gale, Michael Johnson Associates Pty Ltd, Managing Director, Proof Committee Hansard, 20 May 2010, p. 27.

[45]      Minister Carr, Proof Economics Estimates Hansard, 31 May 2010, p. 56.

[46]      Mr Robin Parsons, Partner, Ernst & Young, Proof Committee Hansard, 21 May 2010, p. 17.

[47]      Dr Chris Roberts, Chief Executive Officer, Cochlear, Proof Committee Hansard, 21 May 2010, p. 12.

[48]      NSW Business Chamber, Submission 10, p. 1.

[49]      Cochlear, Proof Committee Hansard, 21 May 2010, p. 14.

[50]      Mr Serge Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, pp 34-35.

[51]      Mr Ken Pettifer, Head of Innovation Division, Department of Innovation, Industry, Science and Research, Letter to Committee, 8 June 2010, pp 1-2.

[52]      Dr Brendan Shaw, Chief Executive Officer, Medicines Australia, Proof Committee Hansard, 20 May 2010, p. 3.

[53]      Mr Robin Parsons, Partner – Indirect Tax, Ernst & Young, Proof Committee Hansard, 20 May 2010, p. 11.

[54]      Mr Alastair Hick, Director, Commercialisation, Monash University, Proof Committee Hansard, 20 May 2010, p. 21.

[55]      Explanatory Memorandum, para 2.35, p. 25.

[56]      Australian Information Industry Association, Submission 26, p. 2.

[57]      Michael Johnson Associates, Submission 5, Attachment 2, p. 10.

Chapter 6 - Complexity and changes

[1]        Dyson, Ingenious Britain, p. 54.

[2]        Dr Peter Burn, Director, Public Policy, Australian Industry Group, Proof Committee Hansard, 21 May 2010, p. 4.

[3]        Mr Gregory Oliver, Research and Development Analyst, Cochlear Ltd, Proof Committee Hansard, 21 May 2010, p. 12.

[4]        Mr Serge Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, p. 32.

[5]        Corporate Tax Association, Submission 14, p. 2.

[6]        Deloitte, Submission 22, p. 6.

[7]        Mr Serge Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, p. 35.

[8]        Explanatory Memorandum, paras 3.134–3.136, p. 86.

[9]        Explanatory Memorandum, p. 86.

[10]      Explanatory Memorandum, p. 87.

[11]      Explanatory Memorandum, pp 86–87.

[12]      Explanatory Memorandum, para 3.148, p. 89.

[13]      Explanatory Memorandum, pp 88–89.

[14]      Mr Paul McCullough, Treasury, Proof Committee Hansard, 20 May 2010, p. 48.

[15]      Mr Paul McCullough, Treasury, Proof Committee Hansard, 20 May 2010, p. 48.

[16]      Mr Robin Parsons, Partner – Indirect Tax, Ernst & Young, Proof Committee Hansard, 20 May 2010, p. 14.

[17]      Mr Serge Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, p. 39.

[18]      Caltex, Submission 3, pp 3–5.

[19]      Aditus Consulting, Submission 16, pp 1–2.

[20]      Michael Johnson Associates, Submission 5, pp 5–6.

[21]      Senator the Hon Kim Carr, Minister for Innovation, Industry, Science and Research, Senate Economics Committee Hansard, 31 May 2010, p. 53.

[22]      Senator the Hon Kim Carr, Minister for Innovation, Industry, Science and Research, Senate Economics Committee Hansard, 31 May 2010, p. 54.

Chapter 7 - Administrative and transitional measures

[1]        AusIndustry, Guide to the R&D Tax Concession Part B – Research and Development Activities Version 4.2, July 2008, para B2–1, p. 6.

[2]        Mr Peter Thomas, Chair Tax Concession Committee, Innovation Australia, Proof Committee Hansard, 21 May 2010, p. 49.

[3]        Mr Peter Thomas, Chair Tax Concession Committee, Innovation Australia, Proof Committee Hansard, 21 May 2010, p. 49.

[4]        Mr Peter Thomas, Chair Tax Concession Committee, Innovation Australia, Proof Committee Hansard, 21 May 2010, p. 49.

[5]        Explanatory Memorandum, para 5.2, p. 117.

[6]        Explanatory Memorandum, Tax Laws Amendment (Research and Development) Bill 2010, para 5.5, p. 118.

[7]        Deloitte Touche Tohmatsu Ltd, Submission 22, p. 9.

[8]        Confidential Submitter, Submission 15, p. 4.

[9]        KPMG, Submission 9, pp 4 and 20.

[10]      NOAH Consulting, Submission 8, pp 3-4.

[11]      Dr Russell Edwards, General Manager, Department of Innovation, Industry, Science and Research, Proof Committee Hansard, 20 May 2010, p. 53.

[12]      Dr Russell Edwards, General Manager, Department of Innovation, Industry, Science and Research, Proof Committee Hansard, 20 May 2010, p. 50.

[13]      Explanatory Memorandum, pp 121–122.

[14]      Explanatory Memorandum, para 5.181, p. 155.

Chapter 8 - Estimated impacts of the bill

[1]        Mr Paul McCullough, General Manager, Business Tax Division, Treasury, Proof Committee Hansard, 20 May 2010, p. 46.

[2]        Mr Peter Thomas, Chair, Tax Concession Committee, Innovation Australia, Proof Committee Hansard, 21 May 2010, p. 51.

[3]        Z-Filter, Submission 24, p. 1.

[4]        Mr Paul McCullough and Mr Gerry Antioch, Business Tax Division, Treasury, Proof Committee Hansard, 20 May 2010, p. 46.

[5]        Mr Peter Thomas, Chair, Tax Concession Committee, Innovation Australia, Proof Committee Hansard, 21 May 2010, p. 50.

[6]        Mr Yasser El-Ansary, quoted by Senator Cameron, Proof Committee Hansard, 20 May 2010, p. 16.

[7]        Ms Tracey Murray, Partner, BDO Australia, Proof Committee Hansard, 20 May 2010, p. 38.

[8]        Mr Paul McCullough, General Manager, Business Tax Division, Proof Committee Hansard, 20 May 2010, p. 46.

[9]        KPMG, Submission 9, p. 6.

[10]      KPMG, Competitive Alternatives 2010: Special Report: Focus on Tax, p. 19.

[11]      KPMG, Submission 9, p. 6.

[12]      Mr Kris Gale, Managing Director, Michael Johnson Associates, Proof Committee Hansard, 20 May 2010, p. 27. See also their Submission 5, p. 7 and Attachment B.

[13]      Advanced Manufacturing Coalition, Submission 2, p.

[14]      Mr Robin Parsons, Partner, Ernst & Young, Proof Committee Hansard, 20 May 2010, p. 13.

[15]      Mr Paul McCullough, General Manager, Business Tax Division, Proof Committee Hansard, 20 May 2010, p. 50.

[16]      Mr Gerry Antioch, Manager, Business Tax Division, Proof Committee Hansard, 20 May 2010, p. 50.

[17]      Mr Paul McCullough and Mr Gerry Antioch, Business Tax Division, Treasury, Proof Committee Hansard, 20 May 2010, pp 58-59.

[18]      Michael Johnson Associates, Submission 5, p. 7.

[19]      Information provided by DIISR.

[20]      Venturous Australia, 2008, p. 101.

[21]      Corporate Tax Association, Submission 14, p. 1.

Dissenting Report by Coalition Senators

[1]        Caltex Australia, Submission 3, page 5.

[2]        Australian Treasury, Tax Laws Amendment (Research and Development) Bill 2010 – 2^nd exposure draft, 31 March 2010, p. 26.

[3]        New South Wales Business Chamber, Submission 10, page 6.

[4]        Australian Industry Group, Submission 19, page 3.

[5]        Ernst and Young, Submission 30, page 9.

[6]        Michael Johnson Associates Pty Ltd, Submission 5, pp 14 – 15.

[7]        Mr Kris Gale, Managing Director, Michael Johnson Associates Pty Ltd, Proof Committee Hansard, 20 May 2010, page 30.

[8]        Dr Peter Burn, Director, Public Policy, Australian Industry Group, Proof Committee Hansard, 21 May 2010, page 5.

[9]        Mr Sergio Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, page 35.

[10]      Mr Sergio Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, page 35.

[11]      KPMG, Submission 9, page 4.

[12]      Minerals Council of Australia, Submission 11, page 13.

[13]      Aditus Consulting, Submission 16, page 2.

[14]      Mr Sergio Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, page 35.

[15]      Dr Russell Edwards, Ex officio member, Tax Concession Committee, Innovation Australia, Proof Committee Hansard, 21 May 2010, page 52.

[16]      Michael Johnsons Associates Pty Ltd, Submission 5 – Attachment 1, pp 10 – 12; KPMG, Submission 9, page 10; Deloitte, Submission 22, page 12, Document tabled by Mr Serg Duchini (Deloitte) at a public hearing in Sydney on 21 May 2010: "Incorrect bill references in the explanatory memorandum", Additional Information Received; Ernst and Young, Submission 30, page 10.

[17]      Michael Johnson Associates Pty Ltd, Submission 5, page 3.

[18]      Mr Kris Gale, Managing Director, Michael Johnson Associates Pty Ltd, Proof Committee Hansard, 20 May 2010, page 28.

[19]      Mr Kris Gale, Managing Director, Michael Johnson Associates Pty Ltd, Proof Committee Hansard, 20 May 2010, page 28.

[20]      Organisation of Economic Co-operation and Development, Frascati Manual – Proposed Standard Practice For Surveys on Research and Experimental Development, OECD, 2002, page 30.

[21]      Mr Kris Gale, Managing Director, Michael Johnson Associates Pty Ltd, Proof Committee Hansard, 20 May 2010, page 27.

[22]      Dr Peter Burn, Director, Public Policy, Australian Industry Group, Proof Committee Hansard, 21 May 2010, page 3.

[23]      Tax Laws Amendment (Research and Development) Bill 2010, section 355-25.

[24]      Caltex, Submission 3, page 6.

[25]      Dr Peter Burn, Director, Public Policy, Australian Industry Group, Proof Committee Hansard, 21 May 2010, pp 3 – 4.

[26]      Dr Brendan Shaw, Chief Executive Officer, Medicines Australia, Proof Committee Hansard, 20 May 2010, page 3.

[27]      Mr Ian Ross-Gowan, Manager, Michael Johnson Associates Pty Ltd, Proof Committee Hansard, 20 May 2010, page 29.

[28]      Tax Laws Amendment (Research and Development) Bill 2010, section 355-30

[29]      Caltex, Submission 3, page 6.

[30]      Mr Innes Willox, Director, Government and International Relations, Australian Industry Group, Proof Committee Hansard, 21 May 2010, page 7.

[31]      Mr Gregory Oliver, Research and Development Analyst, Cochlear Ltd, Proof Committee Hansard, 21 May 2010, page 13.

[32]      Australian Industry Group, Submission 19, page 7.

[33]      Australian Industry Group, Submission 19, page 7.

[34]      Australian Industry Group, Submission 19, page 7.

[35]      Australian Industry Group, Submission 19, page 7.

[36]      Ms Tracey Murray, Partner, Research and Development, BDO Australia, Proof Committee Hansard, 20 May 2010, pp 39 – 40.

[37]      Mr Gregory Oliver, Research and Development Analyst, Cochlear Ltd, Proof Committee Hansard, 21 May 2010, page 12.

[38]      Mr Sergio Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, page 32.

[39]      Ms Deborah Monk, Director, Innovation and Industry Policy, Medicines Australia, Proof Committee Hansard, 20 May 2010, pp 4 – 5.

[40]      Mr Robin Parsons, Partner, Indirect Tax, Ernest and Young, Proof Committee Hansard, 20 May 2010, page 12.

[41]      Michael Johnson Associates Pty Ltd, Submission 5 – Attachment 2, page 23.

[42]      Michael Johnson Associates Pty Ltd, Submission 5 – Attachment 2, page 23.

[43]      NOAH Consulting, Submission 8, page 3.

[44]      KPMG, Submission 9, page 7.

[45]      Deloitte, Submission 22, pages 2 and 7.

[46]      Property Council of Australia, Submission 28, page 7; Deloitte, Submission 22, page 7.

[47]      Ernst and Young, Submission 30, page 4.

[48]      Ernst and Young, Submission 30, pp 4 – 5.

[49]      NOAH Consulting, Submission 8, page 3; KPMG, Submission 9, page 7.

[50]      Corporate Tax Association, Submission 14, page 2.

[51]      Ernst and Young, Submission 30, page 5.

[52]      Ernst and Young, Submission 30, page 5.

[53]      KPMG, Submission 9, page 7.

[54]      KPMG, Submission 9, page 7.

[55]      Tax Laws Amendment (Research and Development) Bill 2010, section 355–5.

[56]      Corporate Tax Association, Submission 14, pp 1–2.

[57]      Corporate Tax Association, Submission 14, page 2.

[58]      Advanced Manufacturing Coalition, Submission 2, page 2

[59]      Mr Kris Gale, Managing Director, Michael Johnson Associates Pty Ltd, Proof Committee Hansard, 20 May 2010, page 28.

[60]      Dr Peter Burn, Director, Public Policy, Australian Industry Group, Proof Committee Hansard, 21 May 2010, page 4.

[61]      New South Wales Business Chamber, Submission 10, page 1.

[62]      Dr Christopher Roberts, Chief Executive Officer, Cochlear Ltd, Proof Committee Hansard, 21 May 2010, page 14.

[63]      Mr Sergio Duchini, Partner and Research and Development and Tax Incentives Practice Leader, Deloitte, Proof Committee Hansard, 21 May 2010, page 33.

[64]      Mr Andrew Chia, Group Tax Manager, Cochlear Ltd, Proof Committee Hansard, 21 May 2010, page 17.

[65]      Professor Roy Green, Dean, Faculty of Business, University of Technology Sydney, Proof Committee Hansard, 21 May 2010, page 20.