Innovation in the automotive sector has received a boost from the Morrison Government, which is extending the research and development tariff concession for a further four years until 30 June 2025.
The extension took effect on 1 April 2021. Companies that are registered under the Automotive Transformation Scheme Act 2009 as at 31 December 2020 will continue to be able to claim a tariff concession of up to five percent on the value of imports used for automotive research and development in Australia. By extending the tariff concession, the government aims to support the ongoing design and development of cars in the country and provide job opportunities for Australia’s workforce. This measure is estimated to decrease receipts by $1.7 million over the forward estimates period.
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