Dr Woods confirms the end of Growth Grant programme at end of 2018/19 tax year

Science, Research and Innovation Minister Megan Woods has made plain that the $657.2 million Growth Grant programme will be terminated at the end of the 2018/19 tax year.

Critics of the programme expressed disappointment on Budget Day that Dr Woods had not reaffirmed the phase-out of the grants in favour of the new R&D tax credit.

Taxpayers’ Union Executive Director Jordan Williams, for example, complained that when the Minister announced Labour’s R&D tax credit scheme earlier in the year, she said it would replace the growth grant scheme administered by Callaghan Innovation.

“But buried in the Budget appropriations we see that Callaghan Innovation’s funding for corporate welfare hasn’t been cut by a cent. Not even one,” he said.

“Megan Woods has let down taxpayers, and we will be working day and night to redouble our efforts to defeat this corporate welfare industry that picks winners and favourites, and keeps Callaghan Innovation’s feather-nesters in their taxpayer funded make-work scheme.”

But the Minister’s Office has confirmed to AgScience that – as reported by National Business Review yesterday – the Growth Grant scheme will be closed to new applicants on March 21 2019.

She told the newspaper:

“Businesses with an active Growth Grant on March 31, 2019, will have the option to continue receiving their grant until March 31, 2020.

“A temporary grant scheme mirroring the R&D tax incentive will be implemented to provide support for former Growth Grant recipients with insufficient tax liability to use an R&D tax credit immediately.”

A core focus for Callaghan’s 384 staff is now gone and a sharp round of redundancies is presumably on the way, NBR reported.

But Dr Woods emphasises Callaghan Innovation will have a continuing role in support areas.

“All of Callaghan Innovation’s other services and products, including R&D Project Grants [a smaller scheme that typically tops out at $100,000 per grant compared to Growth Grants’ $15-25m] and R&D Student Grants are not affected by the R&D Tax Incentive,” the minister says.

A minister staffer told AgScience a paper went to Cabinet on April 19 about the R&D Tax Incentive Discussion Document.

The R&D Tax Incentive discussion document and the Growth Grant transition consultation document (HERE) outline the main features of the Government’s proposals.

Submissions are open until 1 June.

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