Are you missing out on the R&D Tax Incentive?
The Research and Development (R&D) Tax Incentive is a scheme offered by the Australian government to encourage companies who are investing in the latest technologies, devices, materials, services, products and processes. The potentially eligible activities are extremely diverse, and they may also include any initiative to bring significant improvements in usability, functionality, efficiency, performance, and environmental impact.
Under the R&D Tax Incentive program, your Australian business can claim substantial cash rebate or tax offset for spending on any eligible work. The main goal of this program is to pave the path for cutting-edge research and landmark innovation. Many of Australia’s greatest innovations have been able to reap the benefits of this program so far.
The Two Major Components of the R&D Tax Incentive are:
- For eligible business entities with an annual turnover of > $20 million, as much 45% refundable tax offset is offered.
- For the rest of the eligible entities, a non-refundable 40% tax offset is proposed. Any unused offset amount could be applicable to incoming years.
The R&D Tax Incentive compensates for the financial risk of research and development of your company. The incentive works as a catalyst to carry on with the innovative approach to develop improved or new services, products and processes.
Visit the link below to find out more about the requirements, how to be eligible and how to apply:
Isthiak Ahsan has been working as a freelance writer for over 5 years. He is passionate about digital marketing and recent trends. He loves it when people call him a “bookworm”.