Research & Development Tax Incentive
Are you one of the 60 percent of eligible Australian businesses missing out on millions in tax offsets and cash refunds because you’re not leveraging Australia’s premium government business incentive program?
According to The Australian newspaper, up to 60 percent of Australian businesses didn’t realise their R&D programs were eligible for the R&D Tax Incentive benefit. As a result, they were missing a potential cash refund of up to 43.5 cents for every dollar spent on R&D in Australia.
The R&D Grant in Australia is a Federal Government incentive program to encourage companies to invest in R&D to boost competitiveness and improve productivity. It is a self-assessment program: if you are eligible, you are entitled to claim.
Who can claim for the R&D Tax Incentive?
- Are you a body corporate that is incorporated under Australian Law?
- Are you a foreign company that is a resident in Australia?
- Are you a foreign company with a permanent establishment in Australia?
What can you claim?
- The research and development tax incentive is about generating new knowledge through experimental development
- Eligible R&D activities include core and supporting activities
- Eligible expenditure includes salary/wages, contractor costs, trial expenditure, direct expenditure such as raw materials, and depreciation on plant and equipment
What is the benefit?
- A 43.5% refundable cash rebate for eligible entities with an annual turnover of less than $20 million
- A 38.5% non-refundable tax offset for eligible entities with an annual turnover equal to or greater than $20 million
How to apply:
- Registration is an annual requirement
- Applications for R&D must be lodged with AusIndustry within 10 months your company’s financial year-end
- The tax benefit is claimed through the Company Income Tax Return
- Permanent net tax benefit of 8.5 - 16%
- Lodgement deadline is 10 months after financial year end
- Supporting documentation is critical