The proposed reduction to the R&D Tax Incentive of 1.5%, that was to apply from the 2014/2015 tax year onwards, has not passed through Parliament.
Companies accessing the R&D Tax Incentive will be able to keep the full benefit of the program.
The Government introduced legislation to reduce the benefit of the R&D Tax Incentive by 1.5% in May 2015. This legislation was before the Senate. On 17 April 2016 the Bill lapsed.
The current Government has previously stated that it does not generally support the introduction of retrospective tax legislation. Therefore it is unlikely, although not impossible, that the Bill will be reintroduced at a later date to apply to the 2014/2015 tax year retrospectively. The upcoming budget will likely be the next opportunity to see if the proposed cuts are still on the agenda.