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    14   Tax Laws Amendment (Research and Development) Bill 2010

The order of the day having been read for the resumption of the debate on the question—That the bill be now read a second time—

Debate resumed by Mrs Mirabella who moved, as an amendment—That all the words after “That” be omitted with a view to substituting the following words: “the House:

(1)    reaffirms its commitment to providing continued high levels of support for Australian businesses that invest in research and development (R&D) activities;

(2)    notes that this bill weakens the current system, and recognises that the bill has significant limitations in relation to the following:

(a)    the proposed start date of 1 July 2010;

(b)   the establishment of a ‘dominant purpose’ test;

(c)    the application of feedstock provisions to a wide range of activities and results;

(d)   the reduction of support for R&D in the building industry;

(e)    the disqualification of many small and medium-sized businesses from support because of new rules in respect of their ownership structures and turnover;

(f)    the requirement for costs to be documented and attributed to ‘core’ and ‘supporting’ activities;

(g)   the new provisions relating to third-party investors in firms’ R&D; and

(h)   the proposed application of new rules relating to the disposal of R&D results to actions taken prior to the commencement of this legislation; and

(3)    urges the Government to release full modelling demonstrating the impact of its proposed changes, and reconsider its approach in order to ensure that encouragement of business R&D activity is not substantially reduced”.

Debate continued.

 

 

Mr A. D. H. Smith addressing the House—

It being 1.45 p.m., the debate was interrupted in accordance with standing order 43, Mr A. D. H. Smith was granted leave to continue his speech when the debate is resumed, and the resumption of the debate made an order of the day for a later hour this day.

    15   MEMBERS’ STATEMENTS

Members’ statements were made.