The R&D Tax Incentive Deadline

[ An article contributed by Swanson Reed ]
by Joe Scuderi Published

This is an article contributed by one of our Collective Members, Damian Smyth from Swanson Reed.

The Research and Development (R&D) Tax Incentive is the federal government's primary assistance programme for business research and development. Registrations for research and development activity conducted during the YE 30 June 2017 must be lodged by 30 April 2018.

SMEs may be led to believe that claiming their tax incentives or research and development grants is a complex and time consuming process. However, if claims are able to be adequately substantiated, the benefits available are generous. 

Our clients have had success accessing their R&D claims by engaging with experts in order to review their legal entitlements as well as assist with the preparation of the necessary documentation.

To be eligible for R&D Tax incentive you must be:

a) incurring eligible R&D Expenditure through a company structure;

b) conducting an experimental activity where the outcome cannot be determined in advance;

c) generating new knowledge by developing new or improved;

  • Products;
  • Processes; or
  • Services;

d) documenting the results of your R&D Activity;

Additionally, companies engaged in R&D may be eligible for the following tax benefits.

Companies with group turnover less than $20 million receive a 43.5% refundable tax offset which provides the following for eligible expenditure:

  • a 43.5% cash refund to the extent the company is in tax loss;
  • a 16% tax saving/ refund if the conpany is in a tax payable position;

Companies with group turnover exceeding $20 million receive a 38.5% non-refundable tax offset which provides the following for eligible expenditure:

  • an 8.5% tax

If you would like to review the eligibility requirements further, please contact our office or our Collective member that is an expert in this field, Damian Smyth of Swanson Reed.

More information is also available  here.

General Advice Disclaimer

Information provided on this website is general in nature and does not constitute financial or legal advice. Every effort has been made to ensure that the information provided is accurate, but information may become outdated as legislation and new government announcements are made. Individuals must not rely on this information to make a financial, investment or legal decision as it does not take into account their personal circumstance. Before making any decision, we recommend you consult a licensed adviser or legal practitioner to take into account your particular objectives, circumstances and individual needs.

Joe Scuderi
read more by Joe Scuderi

Joe has over 12 years experience managing the tax affairs of a vast range of small to medium sized businesses and high wealth individuals. Joe works closely with the tax specialist team (headed by Michael Garrone) on many practical solutions for clients.

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