The R&D Tax Incentive is the Australian Government’s principal measure to encourage industry investment in research and development. It is a broad-based, market-driven program that aims to boost company competitiveness, improve productivity and deliver economy-wide benefits to Australia.
The R&D Tax Incentive replaces the R&D Tax Concession for research and development in income years commencing on or after 1 July 2011. It provides generous benefits for eligible research and development activities (R&D activities). The two components of the program are:
- a 45 per cent refundable tax offset for eligible companies with an aggregated turnover of less than $20 million per annum; or
- a non-refundable 40 per cent tax offset for all other eligible companies.
The R&D Tax Incentive is jointly administered by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office (ATO)