Increasing R&D spend in our ENR sector will help drive our economy and this has not gone unrecognised by our government. An example of mining innovation is the move towards investing R&D in remotely operated and autonomous/automated mining equipment, and in improved communications systems to reduce exposure to dangerous mining environments and to lower energy consumption.
An incentive in the form of a ‘super’ additional 50 percent tax deduction on eligible R&D spend can be claimed (based on a pre-approval system) and new legislation, effective 1 October 2012, has relaxed previous restrictions on claiming such incentives for ENR companies.
The benefit of extracting value from current and future R&D spend is that this lowers costs, improves cash flow and returns to shareholders – and ultimately enables our country to compete on a value basis in this globally-coupled economy we live in.
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