Last year's budget announcements confirmed that the Government would introduce a Research and Development tax credit regime for the 2008/9 year. Under the regime, qualifying companies could benefit from a tax credit of 15% of annual expenditure.
Full information on this scheme is available through the IRD (see link below). In brief, it applies to:
- Businesses undertaking R&D in excess of $20,000 eligible expenditure for the year and where R&D is carried out in NZ.
- R&D which is defined as ?systematic, investigative and experimental' which seeks to resolve scientific or technological uncertainty or that involves an appreciable element of novelty and that it is carried on for the purposes of acquiring new knowledge or creating new or improved materials, products, devices, processes or services' [see MORST link below] Businesses must test a defined hypothesis.
- Activities that support R&D may also qualify for the tax credit.
Businesses, partnerships, sole traders and other entities must apply by claiming back the 15% in their annual income tax returns. For more information, register to attend Auckland City Council's seminar on the R&D tax credit (see below for link) or view the following sites:
http://www.morst.govt.nz/publications/a-z/r/rd-qa/
http://www.ird.govt.nz/rd-tax-credit/
The Government has announced it will fund up to $4 million (in principle) for the creation of a 3,000 square metre 'innovation park' building in the Waikato. The building will also draw funding from Hamilton City Council and Innovation Waikato Limited. The wider park already focuses on agritechnology, agricultural engineering and food related innovation.
The New Zealand inventor of the disposable syringe and tranquiliser gun died on May 4 in Canterbury. Colin Murdoch featured last year in a series of New Zealand Post stamps about 'Clever Kiwis'. A low achiever at school, Colin's vivid imagination and ability to conceptualise and design his thoughts saw him achieve 40 patents and save the lives of millions through his inventions. See The NZEdge or Wikipedia for the amazing life story of a quiet New Zealander.
The most significant trade agreement ever entered into by New Zealand was signed between China and New Zealand on 7 April 2008 in Beijing. The treaty liberalises trade in goods and services between the two countries, and is expected to come into force on 1 October 2008 after completion of parliamentary processes. Put simply, the FTA will eliminate tariffs on 96% of New Zealand's current export goods to China, making 35% of current exports duty free to China from day one, and a further 6% duty free from 1 January 2009 (mainly wool). Over the next five years, a further 31% of exports will become duty free and beyond that tariffs will be progressively eliminated. 
Gone are the days of Export Managers traversing the globe with a brief case full of product samples looking for a willing buyer. But how far have we really progressed in our approach to new product development (NPD)? 
