Research and development by small business has risen by 17 per cent to reach $1.3 billion, according to research released by the Australian Bureau of Statistics.
The full text of an announcement from Federal Minister for Small Business and Tourism Fran Bailey is pasted below
Research and development by small business has risen by 17 per cent to reach $1.3 billion, according to the latest ABS statistics.
The ABS reports R&D expenditure in small businesses reached $1,316 million in 2005-06, a solid improvement on the 2004-05 figures of $1,130 million.
Importantly R&D expenditure by micro-businesses (less than five employees) increased by 18 per cent to reach $354 million.
"Small business is spending more on R&D, developing new goods and opening up brand new markets," Fran Bailey, Minister for Small Business and Tourism, said today.
"In a global economy, small business has to be innovative to compete. The good news is small business is taking on the best in the world and winning."
Fran Bailey said the Howard Government's strong economic policies are encouraging more small business R&D. For example, the R&D Tax Concession offers:
- A tax deduction of up to 125 per cent of expenditure incurred on R&D activities;
- An R&D Incremental (175 per cent Premium) Tax Concession for certain companies that increase their grouped R&D expenditure; and
- An R&D Tax Offset for companies with group turnover under $5 million and a group R&D expenditure of up to $1 million for the year.
"Australia is home to some of the best scientists and researchers in the world. Through our innovation policies, the Howard Government is helping to link these researchers with small business operators, creating more jobs and wealth for Australia," Fran Bailey said.
"As good as these results are, I believe we can do even better. There is a whole range of programs and support for small businesses who are interested in starting or expanding their R&D program.
"I would encourage any interested small business to contact AusIndustry on 13 28 46 for further assistance."
