Registrations for the R&D Tax Incentive are closing soon

In Australia, there are numerous business grants and tax incentives available to encourage and support Australian businesses.  The Research & Development (R&D) Tax Incentive is a popular one for businesses of all sizes, which are undertaking research and development activities in any industry.  For most businesses, with a financial year of 1 July to 30 June, the deadline for lodging an application is fast approaching.

What is the R&D Tax Incentive?

The R&D Tax Incentive aims to help businesses stay ahead of the curve and encourages innovation for even the smallest businesses; it provides a tax offset for some of a company’s cost of doing eligible research and development activities by reducing a company’s income tax liability.

The tax incentive offers a company whose revenue is below $20 million a 43.5% refundable tax offset against eligible R&D expenditure that amounts to $100 million or less.  All other eligible companies can claim a 38.5% non-refundable tax-offset.

When is the deadline to apply?

Registration is a critical first step in accessing the R&D Tax Incentive.  Companies must register their R&D activities with AusIndustry before they are able to claim the benefits of the R&D Tax Incentive.  Applications can be made at any time, and the deadline for lodging an application for registration is ten months after the end of a company’s income year.  Therefore, companies with a standard income period of 1 July to 30 June must lodge their registrations with AusIndustry by 30 April 2019.

Typically, AusIndustry receives a large number of registration applications close to the registration deadline, including on the final day, so it is better to lodge your registration and get your application submitted as early as possible.

Applications cannot be made retrospectively.  If your business is eligible, don’t miss on what can be a substantial tax offset for your business.

Greenwich and Co are experienced in preparing successful R&D Tax Incentive claims.  Speak to us today about how we can assist your business in assessing your business’s eligibility or in managing any stage of the submission and compliance process.

Download our ebook outlining everything you need to know about the R&D Tax Incentive.

Read more about some of the other business grants available for Australian businesses.