The Federal Government’s R&D Tax Incentive has been designed to provide generous rebates or tax breaks to support and encourage Australian R&D. Being a broad-based entitlement program, it helps businesses recover part of the costs of conducting eligible R&D. It is open to firms of all sizes in a variety of industries.
The two core components are:
- a 43.5 per cent refundable tax offset to eligible entities with an aggregated turnover of less than $20 million per annum.*
- a non-refundable 38.5 per cent tax offset to all other eligible entities.*
*Claims are limited to $100M in R&D expense.
Via the incentive, companies conducting eligible R&D in Australia may be entitled to up to a 43.5% Federal rebate on their R&D expenses, either as a direct cash refund from the ATO, or as a reduction on the tax liability for profitable enterprises. For companies doing R&D, and particularly for companies with limited funds, this cash refund can be a particularly effective method of R&D support.