In the industry that I know, IT, the R&D tax concession is massively abused. Typically, work that is required to meet a preexisting contractual requirement is treated as being R&D for the purpose of the tax concession.

I would certainly favour an increase in the R&D concession, but only if it was accompanied by significant enforcement actions to ensure that it was properly applied. Without this, it is just a rort, whereby customer projects are subsidised by the tax payer.

Sylvia.

Chris,

Perhaps instead of another form of corporate welfare, the Commonwealth would be better investing directly into the CSIRO and similar university reasearch institutions.

There may be some of the big companies that do R&D, like mining companies looking for minerals, but that's not real science. Companies like pharmacutical companies,could really rip-off any type of subsidy.

If CSIRO and Universities were guaranteed reasearch grants for extended periods, actual real headway may be made - for the benefit of all Australians (well at least until someone realises that they can be sold off).

Narcissist,

The purpose of the R&D tax concession is to address the fact that, left to itself, the market is insufficiently motivated to do research and development. The concession is not intended to be just for research, but also for development. Both of these things have to be done before there is a product available for sale, and both of them contain significant risks.

The tax concession means that the tax payer is carrying some of the risk. If everything works out, the tax payer is then reimbursed multiple times in the form of tax on the resulting profits.

Sylvia.

-Special Economic Zones (Darwin ?)

-Utilization of guest workers from Indonesia, at x2 Indo rate of pay.

-JAIL for any union thug who messes with the above.

-Appointment of Industry specialists who focus on World wide technical approvals for EU, USA, Asia.

-Harnessing of our Educational system for the benefit of Engineering innovation.

-Channeling of our raw materials DIRECTLY into value added, global products. (rather than going to Korea, China etc to be processed then sent back as product)

-Not to mention the establishment of a huge Wallaby Farm so we can milk them for their x100 more powerful anti biotic than penecillin. (yes, this one is kidding)

Now 'that'.. would be innovative :)

Why wont it happen ? because of our 'democratic' values and our political system. Our system panders for 'short term financial reward' to the electorate, and terms in office are so short that no party is prepared to bite the bullet and do the radical surgery needed to keep us 'in the race'. Perhaps the real problem is ourselves, and our selfishness and idea that we have a 'right' to a certain standard of living no matter what ?

CONCLUSION. Do like me,

-Avoid costly habits like grog and smokes or other drugs
-be prepared to suffer for a while.
-get into small niche areas,
-buy 5 acres and be prepared to grow/raise your own food,
-work from home and avoid petrol costs.
-Bring in your extended family (sons/daughters families) for mutual support and help in all areas of business and life including child care, and outgoings for the property.
-Use the 'net' for global penetration of your products/services.

"I came that they might have life, and have it abundantly".. Jesus.