The R&D Tax Concession is aimed at making companies more internationally competitive by allowing them to deduct up to 125% of eligible expenditure incurred on R&D activities.
Under the R&D Tax Offset program the Government recognises the importance of providing innovative an opportunity to increase their cash flow when they most need it during their initial growth phase, particularly those in tax loss who cannot gain immediate benefit from the R&D tax concession.
This amounts to a 37.5c per dollar rebate on R&D expenditure including items such as salaries, superannuation, overheads, rent, contracted expenditure, plant depreciation and feedstock.
Companies must register their R&D plan annually for approval before completing the tax forms. Applications must be lodged within 10 months of the end of the company’s income year. For most companies with a 30 Jun 2009 Tax year the deadline is 30th April 2010.
For more information about changes coming up in the 09/10 and 10/11 years see our other posting on Budget Changes to R&D Tax.
Contact Treadstone now on 03 90163575 to make sure you have enough time for us to help you claim your R&D Tax Concession.