The Budget Savings (Omnibus) Bill 2016 was passed by the Senate on 15 September 2016 without amendment and now awaits Royal Assent.
Among other measures the Bill implements measures announced in the 2016-17 Federal Budget reducing the rates of the tax offset available under the R&D tax incentive for the first $100m of eligible expenditure by 1.5 percentage points. The higher (refundable) rate of the tax offset will be reduced from 45% to 43.5% and the lower (non-refundable) rates of the tax offset will be reduced from 40% to 38.5%.
