The research and development (R&D) tax incentive has been around for a while in various forms but it’s worth considering.
The Government provides this tax offset to encourage companies to conduct R&D activities that benefit Australia. The current tax-offset rates that apply to qualifying companies are:
- A 43.5% refundable tax offset for companies with an aggregated turnover of less than $20 million (unless they are controlled by tax-exempt entities); and
- A 38.5% non-refundable tax offset for all other companies.
The rate of the R&D tax offset is reduced to the company tax rate if the company’s notional R&D deductions exceed $100 million for an income year.
What are you missing out on?
It’s always difficult for Governments and regulators to keep pace with changing business models, funding approaches and technology.
But, recent reforms and a series of new initiatives seek to free up entrepreneurs from excessive regulation, inflexible tax regimes, and unintended outcomes.
Unfortunately, few entrepreneurs are aware of what is available to them and risk limiting their options for growth.