The R&D Tax Incentive provides financial benefits to companies investing in the development of new or improved products, processes, services, materials or devices.
A successful R&D claim can be the most effective way to increase a company’s bottom line without the need to generate more sales.
The range of eligible activities is extremely diverse and may include any work undertaken to achieve improvements in performance, functionality, useability, efficiency or environmental impact.
The government’s R&D Tax Incentive program allows Australian businesses to claim a tax offset or cash rebate for expenditure on eligible activities. Designed to foster innovation and cutting-edge research, the R&D Tax Incentive program has supported some of Australia’s greatest innovation since its inception.
You will receive either a cash rebate or tax offset simply by claiming.
For income years from 1 July 2016:
- 43.5% refundable tax offset is available for eligible companies with an aggregated annual turnover of less than $20 million per year, provided they are not controlled by income tax exempt entities.
- 38.5% non-refundable tax offset is available for all other eligible companies. Unused offset amounts may be carried forward to future income years.
Please note you have 10 months after the end of your company financial year to register your intention to claim the R&D Tax Incentive for that period. This deadline is immovable and, unfortunately, extensions for applications are never granted. If you follow a July-June financial year, you have until April the following year to register. If you follow a January-December financial year, you have until October the following year to register.
Here’s how we help…
NOAH specialises in assisting companies seeking to access benefits offered by the R&D Tax Incentive. We remove the hard work associated with analysing how the program’s eligibility criteria apply to your business and daily activities. Although our aim is to maximize the benefits for your business, we always seek to do so in a responsible and prudent manner.
Our directors and entire consulting team work solely in the R&D Tax Incentive and grant space, and have been doing so since 2003. With several billions of dollars in R&D Tax Incentive claims to date, we’re well placed to help you maximise your entitlement.
Learn more about the program by downloading AusIndustry’s R&D Tax Incentive Information Sheet.
If you would like to know if your business is eligible for benefits under the R&D Tax Incentive, call us on or contact us online for a free consultation and program outline over coffee.
* The Australian government has recently announced its intention to change the above rates, with this proposal coinciding with a further proposal to drop the corporate tax rate from 30% to 28.5%, meaning that the net impact to companies claiming the Incentive will be zero. Please note that all of the above are yet to be legislated. As always, we keep abreast of all relevant government movements and will provide additional information as it becomes available.