R&D Tax

“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

(AusIndustry website)

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.rndtax.com.au) in the provision of services for clients claiming their entitlements under the R&D Tax Incentive programme.