Affected parties Comment: nature of cost or Impact Evidence (identify) benefit (eg ongoing, one-off), certainty $m present value, evidence and assumption (eg (High, for monetised compliance rates), risks medium or impacts; high, low) medium or low for non-monetised impacts Additional costs of proposed approach, compared to taking no action R&D performing that choose to seek the tax Per $37.5M Low credit will incur the costs of FY 18/19-21/22: demonstrating their eligibility and $103M after ongoing compliance costs (eg, discounting at 6% auditing). Expected that existing Growth Grants recipients will incur similar costs but will incur additional costs. Participation in the system is voluntary and should be outweighed by the subsidy. Administering IR will administer Tax Incentive Per annum: $6M - Low agency (vs Callaghan Innovation for $2.1M = $3.9M Growth Grants). IR costs FY 18/19-21/22: expected to be higher because $11M larger number of firms eligible. discounting at 6% Callaghan Innovation will lose direct connection to large R&D performers, and hence ability to use R&D grants to increase uptake and effectiveness of the other services/programmes. Wider Higher fiscal costs because of FY 18/19-21/22: Medium government wider coverage of firms and $1215M - $749M = slightly more generous rate. The $466M without cost of the tax credit will continue discounting to be met from Vote: BSI and $395M after managed by MBIE in a similar discounting at 6% way. parties No anticipated $0 Monetised FY 18/19-21/22: Low Cost $509M after discounting at 6% Non-monetised n/a costs
Affected parties (identify) Comment: nature of cost or benefit (eg ongoing, one-off), evidence and assumption (eg compliance rates), risks Impact $m present value, for monetised impacts; high, medium or low for non-monetised impacts Evidence certainty (High, medium or low) Additional costs of proposed approach, compared to taking no action R&D performing that choose to seek the tax credit will incur the costs of demonstrating their eligibility and ongoing compliance costs (eg, auditing). Expected that existing Growth Grants recipients will incur similar costs but will incur additional costs. Participation in the system is voluntary and should be outweighed by the subsidy. Per $37.5M FY 18/19-21/22: $103M after discounting at 6% Low Administering agency IR will administer Tax Incentive (vs Callaghan Innovation for Growth Grants). IR costs expected to be higher because larger number of firms eligible. Callaghan Innovation will lose direct connection to large R&D performers, and hence ability to use R&D grants to increase uptake and effectiveness of the other services/programmes. Per annum: $6M - $2.1M = $3.9M FY 18/19-21/22: $11M discounting at 6% Low Wider government Higher fiscal costs because of wider coverage of firms and slightly more generous rate. The cost of the tax credit will continue to be met from Vote: BSI and managed by MBIE in a similar way. FY 18/19-21/22: $1215M - $749M = $466M without discounting $395M after discounting at 6% Medium parties No anticipated $0 Monetised Cost FY 18/19-21/22: $509M after discounting at 6% Low Non-monetised costs n/a