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R&D Taxation Incentive

What is the R&D Incentive and what does it do for businesses?

The Research & Development (R&D) Taxation Incentive is designed to increase businesses' investment in innovation and encourage Australian industry to undertake research and development activities. It helps reduce company tax substantially and, in certain circumstances, can provide a sizable tax refund.

At Brentnalls SA, we consider the R&D Tax Incentive to be a specialised but valuable and generous incentive for our clients to consider. We can help you identify and access the R&D tax incentive (as well as other incentives), provide support and assist with implementation.

How much of a tax reduction is offered?

If your company has incurred R&D expenditure of at least $20,000 in the financial year, you may be eligible.

From 1 July 2016, the R&D tax offset businesses with an aggregated turnover of less than $20 million has been reduced to 43.5% (previously 45%).

For company's with turnover of more than $20 million, the tax offset has been reduced to 38.5% and is non-refundable (previously 40%).

As well as claiming direct expenses incurred in a project, R&D expenditure claims commonly include staff wages and on-costs involved in the R&D Project, and other office expenses.

Consider the Eligibility Criteria

R&D is principally about generating new knowledge through experimentation and using this knowledge to develop new or improved products, systems or processes.

When considering eligibility for R&D the following criteria needs to be considered -

  • Does the project involve developing a new product, an improved product, a new process or improved process?
  • Are your activities generating new knowledge?
  • Do your activities involve testing an idea or theory by carrying out tests or experiments and evaluating the results?

If the answer is yes to these questions it may be worth discussing your eligibility further.

As well as claiming direct expenses incurred in a project, R&D expenditure claims commonly include staff wages and on-costs involved in the R&D project, and other office expenses.

The R&D Tax Incentive is claimed in the Company Income Tax Return, but also requires annual registration with Ausindustry within 10 months of the financial year (i.e by 30 April for most businesses').

Why Brentnalls SA?

Brentnalls SA provides R&D Tax Incentive services to a range of industry sectors including mining, manufacturing, technology, engineering, consumer products, telecommunications and construction. We are experienced in assessing, compiling and defending R&D claims. Our breadth of knowledge in this area means we provide clear and concise advice with successful outcomes.

There are also other Government grants and concessional loan schemes available to innovative businesses and exporters. Please contact a Brentnalls SA team member for more information on these opportunities.



The information provided in this brochure does not constitute advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.

Industry Focus

We have a deep understanding of the issues facing small to medium enterprises but we recognise that to be trusted business advisors we also need to understand the industry you work in.

You need to be confident that your advisors are up to speed on the issues and challenges that you face.


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