R&D and Innovation
Increased Funding for Science and Innovation
$75M to meet rising demand for Callaghan Innovation’s Research and Development Growth Grants.
An increase of $82M over four years for the Endeavour Fund, New Zealand’s largest contestable science fund aimed at research which has the potential to have long-term transformative impact.
Additional funding for strategic science investments to explore natural hazards and the Antarctic environment.
Specific funding to help the Strategic Innovation Partnerships Programme achieve its goal of attracting 10 multi-national companies to undertake R&D activity in New Zealand by 2020.
Interestingly, Budget 2017 includes an estimate of $250m in additional revenue to be collected in tax from the ongoing review and monitoring of Multinational Companies. It is thought by the Minister to be a conservative estimate of the likely revenue to be collected from the recent changes to Non-Resident Withholding Tax on interest and the BEPS (Base Erosion Profit Shifting) initiatives being introduced as part of the OECD move to counter international tax avoidance.
Black Hole Expenditure
Budget 2017 includes the release of a discussion document to address the issue of black hole expenditure which is neither tax deductible nor depreciable. An issue highlighted by the recent TrustPower cases on feasibility expenditure. The document will look at feasibility expenditure which is looking at a new proposal or project, but where no asset is created. In such circumstances this expenditure is to be immediately deductible.
In addition, capitalised feasibility expenditure and other expenditure on an asset abandoned part way through construction will be deductible if it is also expensed under International Financial Reporting Standards.
Discussion is invited as to whether the proposals should be back dated.
$132m into Tertiary Education Skills & Employment
We need to educate our people, but we need to commercialise this to have economic prosperity
Continued investment in technological infrastructure and broadband
$10m to improve financial capability of young New Zealanders
While not technological, the understanding of money is fundamental to any economy