The coalition government has abolished a body set up to oversee more than $1 billion in research and development tax breaks.
Industry Minister Ian Macfarlane has axed the R&D tax incentive advisory committee established by Labor in October 2011.
The committee, headed by lawyer and company director David Miles, provided advice to the government on incentives for research investment.
Labor industry spokesman Kim Carr said now more than ever was the time to attract more investment in R&D.
In 2011/12, more than 10,200 companies registered for R&D tax measures and the figure is still rising.
At June last year, more than 4900 small and medium size companies had claimed $1.3 billion in refundable R&D tax offsets.
The coalition promised at the 2013 election to examine "the effectiveness of existing tax incentives and develop recommendations for improving the incentive regime for innovation and R&D investment".
"That's exactly what this committee was designed to do yet the Abbott government hasn't given it a chance to do its job," Senator Carr told AAP on Friday.
"The members of this committee are not slouches - they are respected leaders in their fields of expertise."
Comment was being sought from the minister.
