“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.”
For more information, click this link
Via the incentive, companies conducting eligible R&D in Australia are currently entitled to up to a 45% Federal rebate on their R&D expenses (rates may be subject to change after 1 July 2014), either as a direct cash refund from the ATO, or as a reduction on the tax liability for profitable enterprises. For companies doing R&D, and particularly for companies with limited funds, this cash refund can be a particularly effective method of R&D support.
DCS Technical assists AccessRnD Tax Solutions Pty Ltd (www.accessrnd.com.au) in the provision of services for clients claiming their entitlements under the R&D Tax Incentive programme.