Open for applications.
The R&D Tax Incentive is a targeted, generous and easy to access entitlement program that helps businesses offset some of the costs of doing R&D. The Program aims to help more businesses do R&D and innovate. It is a broad-based entitlement program. This means that it is open to firms of all sizes in all sectors who are conducting eligible R&D. It provides more generous support for businesses, especially small and medium-sized firms, than the R&D Tax Concession that it replaced.
The two core components are:
- a 45 per cent refundable tax offset (equivalent to a 150 per cent deduction) to eligible entities with an aggregated turnover of less than $20 million per annum
- a non-refundable 40 per cent tax offset (equivalent to 133 per cent deduction) to all other eligible entities.
AusIndustry and the Australian Taxation Office are responsible for delivering the R&D Tax Incentive. We work closely together and are available to help you.
Targeting access to the R&D Tax Incentive
The Assistant Treasurer, the Hon David Bradbury MP, has released for public consideration draft legislation to target access to the Research and Development (R&D) Tax Incentive.
The Australian Government released its Industry and Innovation Statement – A Plan for Australian Jobs on 17 February 2013.
As part of this statement, the Government announced it will introduce a third tier to the eligibility requirements for the R&D Tax Incentive. From 1 July 2013, very large businesses will not be eligible to receive the R&D Tax Incentive.
Reprioritising support under the R&D Tax Incentive will enable enhanced support for small and medium firms through measures in A Plan for Australian Jobs.
Draft legislation and information on how to provide a submission are available on the Treasury website.
The Minister for Climate Change, Industry and Innovation, the Hon Greg Combet AM MP and the Assistant Treasurer, the Hon David Bradbury MP have released for public consideration draft legislation to provide the R&D Tax Incentive through quarterly credits.
R&D quarterly credits will be an opt-in element of the R&D Tax Incentive for companies with an annual aggregated turnover of less than $20 million. It will assist companies eligible for the R&D refundable tax offset to obtain the benefit of the offset sooner on a quarterly basis during an income year, rather than waiting until an income tax return is assessed. This will help many smaller Australian companies undertake research and development by improving cash flow.
The draft legislation and information on how to provide a submission may be found on the Treasury website.
Online Eligibility Tool
Unsure if you are eligible? Try out our interactive tool to help determine if you may be eligible