5 October 2016 - Fewer than 1% of the 10,000 companies receiving cash refunds as part of the research and development tax incentive scheme would be affected by a proposed $2 million cap, Innovation and Science Australia chairman Bill Ferris says.

Mr Ferris, a venture capitalist appointed as chair by Prime Minister Malcolm Turnbull, was responding to criticism from start-ups and biotechnology companies about recommendations contained in a report recommending changes to tax breaks for companies conducting R&D.

Among them is a proposal to limit to $2 million a year the amount that companies with turnover under $20 million can claim as a refundable tax offset.

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