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New Grants

New R&D Tax Credits – 12th May Budget

by | May 12, 2009 | Uncategorized

Treadstone Budget Review 12th May 2009 Treadstone has outlined a summary of changes to Grants and Rebates based on the information provided by the Senator Kim Carr, Minister for Innovation, Industry, Science and Research. This information in the paper titled, Powering Ideas: An Innovation Agenda for the 21st Century.

Changes to R&D Tax. New R&D Tax Credit to replace the R&D Tax Concession, the incremental and international premiums, and the R&D Tax Offset from 2010‑11. This will consist of:

  • 45  per cent refundable tax credit for Australian‑owned firms turning over up to $20 million a year (doesn’t matter if you are in profit or loss). Previously the R&D Tax Offset, equivalent to the value of the R&D Tax Concession, was available to companies with an annual turnover of less than $5 million and whose aggregate Australian owned R&D expenditure was more than $20,000 and less than $1 million per year.
  • 40  per cent non-refundable tax credit for all other (larger) firms


      • Less than $20m turnover;
      Rebate
      Rate
      2009/10 (up to $5m)
      37.5 c/$
      125%
      2010/11
      45.0 c/$
      150%
      More than $20m turnover;
      Non-refundable credit
      Rate
      2009/10 37.5 c/$ 125%
      2010/11
      40.0 c/$
      133%


    For the current year 2009-10 the R&D Tax Offset limit will be increased from $1 million to $2 million.

    The Tax Credit will be open to international companies that hold their intellectual property  offshore.

    Negatives:

    The eligibility criteria for the R&D Tax Credit will be tightened.

    If you would like to find out how we can help you claim your R&D Tax Credit please contact Treadstone on (03) 9016 3575

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