Research and Development Tax Offset

If you’re eligible for the Research and Development (R&D) Tax Incentive but not applying for it, you’re leaving cash on the table. With careful planning, we can help you make sure you tick all the relevant boxes so you don’t miss out.

Once we have determined you are eligible, we’ll help you maintain the required records to support your claim, and, we’ll help you put your claim together for submission.

The (R&D) Tax Incentive provides R&D tax offsets to encourage businesses to innovate and engage in R&D.

Businesses conducting R&D may be eligible for:

  • a 45% refundable tax offset (that’s equivalent to a 150% deduction) for eligible entities with an aggregated turnover of less than $20 million per annum, provided they are not controlled by income tax-exempt entities
  • a 40% non-refundable tax offset (equivalent to 133% deduction) for all other eligible entities (entities may be able to carry forward unused offset amounts to future income years).

The program is jointly administered by AusIndustry and the Australian Tax Office (ATO).

To register for the tax incentive you must lodge your application within 10 months of your company’s income year.

Each year you must apply to register for the R&D Tax Incentive.

Your company must keep adequate records throughout the year to show it carried out eligible activities in incurring the claimed expenditure.

To find out if you are eligible for the R&D Tax Incentive or to learn more about it, contact us.