//R&D Tax Incentive Eligibility Assessments
R&D Tax Incentive Eligibility Assessments2019-01-08T07:21:48+00:00

R&D Tax Incentive Eligibility Assessments

In Australia, there are two main tax offsets available to companies. The new R&D Tax Incentive laws apply to R&D activities from 1 July 2011. You could be eligible for either:

  • 43.5% Refundable (Cash) R&D Tax Offset – for companies with an aggregated group turnover less than $20 million; or

  • 38.5% Non-Refundable R&D Tax Offset – for companies with an aggregated group turnover of more than $20 million.

If you are eligible you will have until 30 April to apply for your R&D Tax Offset.

It is essential to adequately assess a potential R&D claim at the beginning. This is one of the most important parts of the R&D claim process. Greenwich & Co have experience in accurately assessing whether a business is eligible for the R&D Tax Incentive. Speak to one of our team to find out whether your business is eligible to claim the R&D Tax Offset.

Who can apply:

At a minimum, applicants must:

  • be an incorporated company

  • be conducting eligible core R&D activities. These are defined in the legislation as being experiments that are guided by hypotheses and conducted for the purpose of generating new knowledge

  • have incurred eligible R&D expenditure or notional deductions of at least $20,000 (unless using a Research Service Provider or a Cooperative Research Centre).

Your contacts

Lee Carter
Lee CarterTax Principal (R&D Tax – Innovation Grants – EMDG)

Eligible R&D activities are either ‘core R&D activities’ or ‘supporting R&D activities’. To register under the programme, you must have at least one core R&D activity.

The R&D activities you register for the tax incentive must meet all aspects of the legal definitions for either a core or supporting R&D activity. You must keep documentation and records that demonstrate the eligibility of all registered activities.

Core R&D activities are experimental activities:

a.       whose outcome cannot be known or determined in advance on the basis of current knowledge, information or experience, but can only be determined by applying a systematic progression of work that:

    1.        is based on principles of established science; and
    2.        proceeds from hypothesis to experiment, observation and evaluation, and leads to logical conclusions; and

b.      that are conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved materials,
products, devices, processes or services)

How much could you get?

No Claim

38.5% R&D Tax Offset

43.5% R&D Tax Offset

Assessable Income

$200

$200

$200

Deduction/ R&D Spend

($100)

($100)

($100)

Deductions Claimed/ Forfeited

$100

Taxable Income

$100

$200

$200

Gross Tax (30%)

(30%)

(30%)

(30%)

R&D Tax Credit

$38.50

$43.50

Net Tax Payable

($30)

($30)

($30)

Benefit yield of R&D Spend

8.5%

13.5%

To find out if your business is eligible and how much you could be entitled to, contact our team of professionals today.