Jobs risk as innovation goes offshore

start-up technology companies may be forced to shed jobs or go overseas in the wake of the Federal Government’s research and development tax incentive overhaul.

Smaller start-up companies exploring new innovative technologies have been urged to maximise claims this year before the R&D tax reforms systems come into effect on July 1 this year.

Toowoomba-based director of business advisory for leading firm RSM Will Laird said the reforms could push Australian innovation overseas in what he described as the “biggest blow to business” in Tuespated day night’s Budget.

“Our estimates are that a small start-up technology company that puts $2 million into R&D would be about $50,000 worse off under the new rules which could cost jobs,” he said.

“And I think there are plans to continue to grow in that (R&D) space after developments such as the Pulse Data Centre.

“I think (that industry) is certainly a feature here. We really do think that there is a risk Australian innovation will go offshore.”

Mr Laird welcomed the personal tax cuts and the anticiSMALL flow-on effect to the small and medium enterprise sector.

“The main feature was the seven year (plan) for personal tax cuts which we think will alleviate sluggish wage growth, and also probably encourage baby boomers to stay in the workforce longer,” he said.

“They didn’t put much stimulus into it for business and, really, got business to carry the load to fund the integrity measures.”

Mr Laird will be guest speaker at a special Budget Breakfast hosted by the Toowoomba Chamber of Commerce this morning.