R&D Tax Incentive deadline fast approaching
The Research and Development (R&D) Tax incentive claim deadline for 30 June 2016 is coming up on 30 April 2017.
The R&D Tax Incentive is an Australian Government Incentive available to any company aiming to generate new knowledge, including in the form of new or improved materials, products, processes or services. The benefit is delivered as a tax offset for expenditure incurred on eligible R&D activities as either:
- A 45% refundable tax offset available to companies with a group annual turnover of less than $20 million. This equates to a net after tax benefit of 15 or 16.5 cents for each dollar spent on eligible R&D activities.
- A 40% non-refundable tax offset available to companies with a group annual turnover of $20 million or greater (with any unused offset amounts capable of being carried forward). This equates to a net after tax benefit of 10 cents for each dollar spent on eligible R&D activities.
If your company is conducting activities related to the following activities, they are likely R&D eligible activities:
- Trying to solve a problem of a technical nature
- Trying to improve the operational efficiency/throughput or recovery of a process
- Purchasing or building a leading edge technology
- Trialling or testing something where the outcome is uncertain
- Developing any new IP or technical knowledge for your industry
- Receiving awards for innovation or technical achievements in the industry
- Involved in a research collaboration with a University or other research organisation
- Wanting to secure investment for a new idea
Claims must be submitted by the deadline on 30 April 2017.
About the contributor:
Nicole Purser leads the Brisbane R&D and Government Incentives with BDO. He is a qualified accountant, financial manager and business leader with more than 20 years’ experience. She has hands-on experience in delivering R&D Tax Concession and Tax Incentive advice to clients, having previously lead R&D teams in two international accounting firms. Over the past 16 years, Nicola has worked across a broad range of industries in both Australia and the United States of America. As a result, she has a depth of expertise in national and international R&D incentive programs and a proven ability to manage the delivery of large claim engagements.