The R&D Tax Incentive remains Australia’s most widely utilised innovation grant for Small Businesses. The R&D tax incentive provides a cash rebate up to 43.5% of the nominated R&D expenditure, claimed retrospectively after 1st July. It requires businesses to register their R&D activities with AusIndustry then claim the rebate through the ATO with an R&D tax schedule as part of the company tax return.
R&D Tax now open for claims
Business must register between 1st July 2019 – 30th April 2020 to access the 43.5% rebate on expenses incurred from the 2018-19 finanical year. Businesses with an aggregated turn-over of $20m+ are only eligible for the 38.5% non-refundable tax offset.
Did you know…
Did you know that in FY17 that there were 13,410 business registrations submitted for R&D tax. The total R&D expenditure claimed was $13.9Bn. SMEs made up 86% of R&D tax registrations but only 44 % of expenditure. A total of $2.5Bn in offsets were paid out.
Eligibility criteria
R&D Tax Incentive is not a grant. It is an entitlement that all eligible businesses can claim. To be eligible you need to meet 4 key criteria:
- Be an eligible entity (incorporated Pty Ltd company, not a trust or trustee)
- Have conducted eligible R&D activities that meets the definition
- Have incurred the R&D expenses in the year of claim
- Have sufficient documentation to evidence the R&D activities and expenditure.
Ask us for more detail your R&D activities to ensure you are eligible or download our free eBook.
Get the maximum rebate and be audit ready every time with Treadstone.
Treadstone specialises in assessing eligibility and ensuring that the correct documentation is kept to be audit ready. We have prepared over 600 claims and are one of Australia’s leading R&D tax specialists. Contact us for a free evaluation and compliance review on (03) 9008 5937 or email us.
