R & D Tax Incentive

The Research & Development (R&D) Incentive represents a generous, valuable and tangible incentive for eligible companies who expend funds on experimental R&D activities.

The R&D Tax Incentive can potentially deliver a sizeable reduction in company tax and, in certain circumstances, can generate a sizable tax refund.

Administered jointly by the ATO and AusIndustry, the R&D Tax Incentive is a
rules-based entitlement program, meaning if an applicant is eligible, the applicant is entitled to the benefit. 

HLB Mann Judd are experts in assisting innovative businesses to manage, prepare and execute R&D Tax Incentive applications and deploy a range of assessment and project management tools to streamline the process.

Many potentially eligible companies fail to make use of this incentive due to insufficient knowledge of the eligibility requirements.

The R&D Tax Incentive applies to R&D activities and expenditure in income years commencing on or after 1 July 2011 and has two core components:

1. 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

2. a non-refundable 40 per cent tax offset (equivalent to 133 per cent deduction) to all other eligible entities.

The R&D Tax Incentive is a “new” program that requires registrants to delineate between CORE (experimental) activities and SUPPORTING (directly related) activities in R&D projects and there is a new dominant purpose test for supporting activities.

HLB Mann Judd delivers the following R&D Tax Incentive services:
  • Free, anonymous, accurate, eligibility self-assessment
  • R&D planning
  • R&D project management and compliance tools
  • R&D Tax annual registration development and lodgement
  • R&D Tax schedule preparation
  • R&D review and audit assistance
  • R&D Advance finding – providing certainty that your activities are eligible for then R&D incentive.

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