This overview of the R&D Tax Concession gives guidance to company officers involved in research and development. It outlines the benefits and eligibility for:
- a 125% Tax Concession (for investment in R&D which is ‘Australian-owned’);
- an R&D Tax Offset for small companies, enabling them to ‘cash out’ any tax losses (in relation to Australian-owned R&D only);
- an R&D Incremental (175% Premium) Tax Concession for additional investment in Australian-owned R&D; and
- a 175% International Premium incremental tax concession for additional investment in ‘foreign-owned’ R&D
The R&D Tax Concession was introduced in 1986 to encourage Australian industry to undertake research and development (R&D) activities. It aims to make eligible companies more internationally competitive by encouraging innovative products processes and services and by promoting technological advancement and strategic R&D planning. It is part of creating an environment that is conducive to increased commercialisation of new process and product technologies developed by eligible companies. The concession is broad-based and market-driven.
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