Finance Minister Grant Robertson delivered Budget 2018 to the nation
It’s the first Budget for the Labour-NZ First Government and forms a key part of the narrative around where and how our new Government wishes to recalibrate the longer term destination for the country.
Tax – Reconfiguring the incentives for R&D
In the lead up to Budget 2018, the Government released its proposals to lift research and development (R&D) spending from the current 1.3% of gross domestic product (GDP) to a target of 2% of GDP. The solution put forward is to reintroduce an R&D tax credit regime with effect from 1 April 2019.
The bones of the proposed regime are similar to what we had under the previous Labour government, prior to the regime being repealed and replaced with the Growth Grant scheme administered by Callaghan Innovation. It comes at an estimated cost of $1.0 billion of operating expenditure over four years.