Research and development
New South Wales has a globally competitive research sector with a strong infrastructure base. New South Wales research institutions provide consortia and businesses with access to expertise and cutting edge research and development (R&D) infrastructure including large-scale facilities for testing and prototyping, supporting the State's culture of innovation.
The State's R&D regime is also supported by a highly competitive national tax incentive program which provides a 45% refundable tax offset (equivalent to a deduction of 150%) to entities with an aggregated turnover of less than $20 million per annum undertaking eligible R&D activities, and a 40% non-refundable offset (equivalent to a deduction of 133%) to all other eligible entities.
New South Wales attracted 35% of Australian businesses' total spending on R&D in 2011-12. The State was the location for almost half of national business R&D expenditure in services, including 76% of financial and insurance services R&D expenditure, 58% of wholesale trade R&D expenditure, 52% of information media and telecommunications R&D expenditure, and 50% of health care and social assistance R&D expenditure. Additionally, 44% of machinery and equipment manufacturing businesses' R&D expenditure took place in New South Wales in 2011-12.
Business research and development expenditure by industry, 2011-12
NSW as %|
|Agriculture, forestry and fishing||34.8||189.7||18.4|
|Financial and insurance services||2,260.3||2,985.2||75.7|
|Professional, scientific and technical services||1,012.0||2,831.7||35.7|
|Information media and telecommunications||364.0||701.2||51.9|
|Administrative and support services||123.8||308.7||40.1|
|Electricity, gas, water and waste services||64.9||378.1||17.2|
|Transport, postal and warehousing||56.2||292.9||19.2|
|Rental, hiring and real estate services||48.7||92.1||52.9|
|Health care and social assistance||47.3||94.4||50.1|
1. Includes R&D performed overseas but controlled by an Australian business
2. Total includes public administration and safety, accommodation and food services, education and training, arts and recreation services and other services, which are not shown separately.
Source: ABS Cat. No. 8104.0, Research and Experimental Development, Businesses, Australia, 2011-12