The 30th April 2012 deadline is just around the corner for registering your 2010/11 activities for R&D Tax Concession . It is imperative that your R&D projects and activities have been fully documented and your registration form lodged with AusIndustry before the cut off for all businesses on the 1st July – 30th June financial year.
The R&D Tax Concession provides for a tax deduction of up to 125% reduction of expenditure related to R&D.
Companies in a tax loss position with less than $5m turnover can cash-out their carried forward loss up to a maximum of 37.5c in every R&D dollar and for profitable companies the net benefit is a reduction in payable tax of 7.5c for every R&D dollar spent. Companies with three years of existing claims may be eligible for an extra 50% rebate on eligible activities.
R&D is defined under the legislation as any defined technical problem that requires a series of experiments and investigations that follow a systematic process. All of the resources spent in solving this technical problem are eligible to be claimed at 125% of their actual cost.
Please contact Treadstone ASAP so that we can evaluate your activities as being R&D and get a start of documenting your R&D projects so that you can be registered in the system before it’s too late.
This will be the last year to claim under the old program which will be superseded by the new R&D Tax Incentive with an increased rebate of 150% for companies under $20m turnover and 133% for companies with over $20m.