R&D Taxation Concession
The Research & Development (R&D) Taxation Concession provides a significant and valuable incentive for eligible companies who expend funds on research and development. The R&D Tax Concession serves to substantially reduce company tax and, in certain circumstances, can provide a sizable tax refund.
Operating as an entitlement program, meaning that an applicant need only demonstrate eligibility to be “entitled” to the benefit, the R&D Tax Concession is jointly administered by AusIndustry and the Australian Taxation Office.
The incentive is designed to increase businesses investment in innovation and encourage Australian industry to undertake research and development activities.
The 125% tax concession for investment in R&D, entitles companies to claim a concessional deduction in their annual tax returns of up to 125% of qualifying expenditure incurred on the R&D activities in Australia.
This equates to a $7,500 tax reduction for every $100,000 spent on R&D activities.
In situations where an eligible company is a tax loss situation, the R&D Tax Concession can enable them to ‘cash out’ any tax losses, and obtain a tax offset or refund equivalent to their R&D Tax Concession entitlements, when their tax liabilities are assessed.
This equates to a $37,500 tax reduction for every $100,000 spent on R&D activities if you have sufficient tax losses to take full advantage of the R&D Tax Offset.
In certain circumstances, the R&D Tax Concession can be up to 175%, depending on the historical R&D expenditure and claim lodgement history.
At Brentnalls SA we consider R&D Tax to be a highly specialised but valuable and generous incentive for our clients to look in to.
Eligible R&D expenditure can include wages and salaries, overheads apportioned to R&D activities, materials, direct contract expenditure, design costs, depreciation of R&D plant, finance and capital raising costs, to name but a few.
The R&D Tax Concession is claimed via the company tax return and requires annual registration within 10 months from the end of a company’s financial year. Thus, for company’s operating on a July-June year, the lodgement deadline is April 30 in the following year.
To enable Brentnalls to provide a market leading service in this field we have formed a collaboration with YOUR R&D Tax, a South Australian expert in R&D Tax services with over 20 years of experience in this field. (www.yrdt.com.au)
YOUR R&D Tax provide a professional, value based model with the tools, expertise and experience to enable applicants to maximise their claims and benefits while maintaining the necessary compliance aspects of the process.
To determine if you are eligible for the R&D Tax Concession, please click here to undertake a free, anonymous and accurate self assessment test. At the end of the self assessment, please complete the form and press send. By doing this we will then receive your details and results by email and be better placed to discuss your eligibility and benefit.
