After a meteoric rise in tax breaks for companies undertaking research and development in Australia, payments are set to fall by almost $650 million over the next five years.
Budget papers released on Tuesday reveal Research and Development Tax Incentive (RDTI) payments will drop $640.6 million by 2028-29, reflecting what the government says is “lower-than-expected numbers of claims”.
It is a radical reversal of the estimates contained in last year’s Budget, which forecast RDTI payments would climb $2.6 billion between 2023-24 and 2027-28, foreshadowing the end of the post-pandemic lift in claims.
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