The R&D Tax Concession is designed to incentivise companies that are innovative and competitive in all Australian industries. The concession allows eligible companies to deduct up to 125% of eligible expenditure incurred on R&D activities. Find out if you are eligible as applications close on April 30!
Who is entitled to apply?
All companies incorporated in Australia and undertaking eligible R&D activities are entitled to apply. Partnerships, trusts and sole traders cannot apply. Companies that are acting in the capacity of a trustee or nominee (other than in the capacity of a trustee of a public trading trust) cannot claim a deduction for the R&D Tax Concession.
R&D Plans
Activities claimed under the R&D Tax Concession are required to be subject to an R&D Plan. This requirement is designed to reinforce the need for companies to think strategically about their R&D as a critical and ongoing part of their business. Once you have your draft R&D Plan done, we can help you to refine it, and incorporate it into the application and registration process with Innovation Australia.
R&D Tax Offset
The R&D Tax Offset allows small companies to obtain a cash rebate equivalent to the R&D Tax Concession deduction (including the Premium Concession). In most cases, the tax offset will be equal to 37.5 cents in the dollar for each dollar of R&D expenditure. Companies need to show that the R&D activities were undertaken with the main purpose of creating new knowledge, or new or improved materials, products, devices, or processes. It is not necessary to actually achieve the purpose.
175% Premium Concession
In broad terms, the R&D tax concession legislation provides that where a company increases its R&D expenditure above the average of its R&D expenditure for the previous 3 years, the amount of the increase above the previous 3 year claim average may be deducted at 175%, instead of 125%.
How can we help you?
Our R&D specialists will help you identify eligible activities and associated expenditure. We will then prepare, collate and refine the documentation including application forms and your R&D Plan.
Think your business is eligible?
Contact us today and we will help you determine whether your company is eligible for the R&D tax concessions. There may be quite a significant deduction available on your next Income Tax Return. Please phone on 3275 7470 or email:
Susan Gao – susangao@govtgrants.com
Jillian Taylor – jillian@govtgrants.com
