The Australian Computer Society has called on the government to simplify the application process for tax offsets and grants and to at least double the R&D tax offset threshold of $1 million as part of its National Innovation Review submission.
ACS president, Kumar Parakala said that compared to other OECD countries, Australia has “not been successful at commercialising and marketing its ICT innovations at the national or international level”.
“We need to look at other small countries like Finland, Sweden, Singapore, Switzerland and Malaysia who have established a strong ICT presence in the global market and use this as a point of reference on which to model our future ICT innovation directions here in Australia.”
He highlighted the country’s reduction in the value of R&D concessions from 150 per cent to 125 per cent as an example of where Australia is out of step with offshore trends.
The submission also highlighted the need for the definition of innovation to broaden beyond the “invention” to cover the broad range of activities which involve the application, adaptation and use of technologies and knowledge in different ways as well as the ability to create new markets for existing products.
Part of the 12 recommendations include re-evaluating current innovation tax incentives, offsets and concessions to create a more conducive environment for private Australian companies to invest in R&D and innovation. The ACS believes the tax offset threshold of $1million should be at least doubled.
It also said to benchmark the Australian innovation system, its R&D policy, regulatory, support and incentives against those of other countries who have created a strong international presence in ICT market.
The ACS recommended the implementation of government purchasing practices and policies that allow for piloting of new innovation to help mitigate the risks of new solutions.
“The National Innovation Systems Review comes at an appropriate time in Australia’s growth, and the ACS supports the government’s moves to assess the state of the innovation industry at a time when ICT development and innovation will play a pivotal role in the future of the Australian economy,” said Parakala.