The Business Council of Australia (BCA) has issued a strong call for private sector research and development (R&D) investment to reach 3 percent of GDP, up from the current 1.7 percent. Their goal is to boost national productivity, create jobs, and strengthen Australia’s position as an innovation-driven economy.

Key Points

• Lowering Investment Barriers
  • The BCA recommends removing or significantly raising the existing R&D tax threshold. They propose a minimum of 250 million dollars, indexed over time, to encourage larger scale innovation.
• A Clear National Vision
  • Reaching 3 percent of GDP for R&D would align Australia with global leaders such as the United States at 3.5 percent and Israel, which invests even more.
• Partnership and Commercialisation
  • The initiative supports stronger collaboration between business and universities, enhanced tax incentives including patent boxes, and improved transparency in R&D tax programs.
• Economic Payoff
  • Research by Science and Technology Australia suggests that achieving this target could elevate GDP by 100 billion dollars and support an additional 42,000 jobs

Why It Matters for SMEs in North East Victoria

• Fuel for Scale and Growth
  • Greater R&D support means more opportunities for small and medium businesses to innovate, leading to improved products, services, and market competitiveness.
• Stronger Funding Ecosystem
  • Removing tax disincentives and increasing incentives can open access to more grant programs and funding options.
• Regional Advantage Through Innovation
  • Local businesses investing in R&D can become regional leaders, attract new talent, and tap into collaborative university partnerships.

What Business Wodonga Members Can Do

• Review Your R&D Strategy
  • Are you exploring opportunities to innovate? Consider partnering with universities or research centres.
• Stay Informed
  • The BCA’s recommendations and an ongoing federal review, expected to conclude by late 2025, may lead to new tax breaks and grant opportunities.

Join the Conversation

• Engage in regional discussions on innovation and productivity through Business Wodonga.

In Partnership with Wodonga Prestige
Wodonga Prestige proudly sponsors Business Wodonga to foster regional innovation and business growth. Together, we support ambitious ventures that drive productivity and sustainable economic success.