12th May 2021 | Grants
The Research & Development Tax Incentive (R&DTI) offers a tax offset for companies conducting eligible R&DTI activities. It encourages investment in R&D to help your company to grow and innovate which generates benefits for the Australian economy.
As well as providing financial support, the R&DTI can be an opportunity to collaborate with registered Research Service Providers (RSPs). Tax offset for eligible R&D Tax Incentive activities.
Who is this for?
Eligible companies conducting eligible R&D Tax Incentive activities.
What tax offset benefits are available
Depending on your company’s annual turnover, the R&D provides either a refundable or non-refundable tax offset.
- 43.5% refundable tax offset is available to companies with an annual turnover of less than $20 million.
- 38.5% non-refundable tax offset is available to companies with an annual turnover is more than $20 million.
From 1 July 2021, these offset rates will be amended with the introduction of enhanced reforms to the R&DTI.
The difference between an R&D project and an R&D activity
R&D projects are made up of a number of steps that you must take for a project to succeed. These steps are R&D Tax Incentive activities. Each R&D activity will have one or more actions that you must complete to achieve an activity outcome.
The program supports R&D activities that can be shown to follow a set of specific actions. These actions must meet the requirements set out in the definition of an eligible R&D activity.
The definition of an eligible R&D activity under the R&DTI
Eligible R&D activities are defined in the legislation that underpins the program. The Income Tax Assessment Act 1997 identifies eligible activities as either core R&D activities or supporting R&D activities.
To understand more or to check for eligibility please go to the government website R&D
Or to speak to our R & D specialist click here