The Australian Advanced Manufacturing Council has called for a review of innovation in Australia’s manufacturing sector. It wants the Productivity Commission to consider new policies to encourage more development of new intellectual property. The AAMC says advanced manufacturing relies on IP as its key asset and yet the tax system is still designed around the assets of old manufacturing – plant and machinery. It says tax revenue is being lost through IP developed in Australia but commercialised overseas. New tax policies could help manufacturing to consider local R&D and production and therefore boost productivity. It wants a removal of the $100 million cap on R&D expenses claimed as a tax deduction. AAMC says a good way for businesses to develop IP is in collaboration with an approved Australian Research Institute or university and cites our nation’s very poor record in terms of industry collaborating with research centres.
Source: Manufacturers Monthly