The Research & Development (R&D) Tax Incentive represents a generous incentive for eligible companies who expend funds on experimental activities.
The R&D Tax Incentive can potentially deliver a sizeable reduction in company tax and, in certain circumstances, generate a sizeable tax refund. This will allow your business to grow and have the cash flow to further your innovation.
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.
How we help clients
HLB Mann Judd’s experts assist innovative businesses to manage, prepare and execute R&D Tax Incentive applications and deploy a range of processes to streamline the process.
The R&D Tax Incentive is much broader than many companies realize. It applies to R&D activities and expenditure in income years commencing on or after 1 July 2011 and has two core components:
- a 43.5% refundable tax offset eligible entities with an aggregated turnover of less than $20 million per annum
- a non-refundable 38.5% tax offset to all other eligible entities with an aggregated turnover of $20 million or more per annum.
Registrants must delineate between CORE (experimental) activities and SUPPORTING (directly related) activities in R&D projects. They must also conduct a dominant purpose test for supporting activities.
We deliver the following services related to the R&D Tax Incentive:
- A free and anonymous online eligibility self-assessment test
- Project management and compliance tools
- 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
- Completion of the income tax return, including R&D schedule.
Many potentially eligible companies fail to make use of this incentive due to insufficient knowledge of the eligibility requirements. Speak to one of our specialists to explore the possibilities.