The Research and Development Tax Incentive is expected to cost an additional $2.1 billion over the next four years in part due to growing artificial intelligence claims, according to new estimates from the federal government.
The estimate, contained in the Mid-Year Economic and Fiscal Outlook (MYEFO), is more than double what was forecast in the May federal Budget, which followed an all-time record spend of $3.2 billion on the program in the 2022-23 financial year.
In the near-term, the government expects the program will cost an additional $432 million this financial year, more than double the $172 million estimated seven months ago.
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