Key Discussion Points

ACCOUNTING SUPPORT

R&D and EMDG Updates

R&D Tax Incentive

R&D tax incentive applications for the previous tax year ended 30 June 2020 can now be lodged with AusIndustry.

Accessing the government’s 43.5% R&D tax incentive cash rebate could provide a vital form of funding to assist your business get past the current COVID-19 situation.

Prime can also provide introductions to R&D financiers that may lend up to 80% of your expected R&D rebate from the previous 2020 tax year.  There is also an opportunity to lend against your R&D rebate that is being accrued for the current year ended 2021.

The recent Federal Government budget announcements confirmed that the R&D refundable tax offset will stay at 43.5% for the foreseeable future for companies with aggregated annual revenue of less than $20million.

Export Market Development Grant (EMDG)

EMDG applications for the previous financial year ended 30 June 2020 can be now lodged with Austrade.

This grant provides exporters with an annual reimbursement of up to $150k – based on 50% of their eligible promotional expenses. There are several expense categories including online advertising, appointment of overseas reps and securing overseas patents and trademarks.

As such there is still an ability to incur eligible expenditure without leaving Australia.

Austrade’s recently announced COVID-19 stimulus measure for the EMDG include:

1. Removal of the requirement to generate export income from the businesses 3rd claim onwards.
2. Increase in the first tranche payment to $100,000 (previously $40,000).

Note: The above measures are only planned to apply for this claim year.

The recent Federal Government budget announcements confirmed the governments intent to re-vamp to the EMDG scheme with a new system which is proposed to take affect from July 2021.  The new scheme will be based on an approved upfront grant programme. We will provide further details in due course as we get more information.

For any enquiries or support:

Melbourne team
Brendan Brown Simone Quin

Brisbane team
John Driscoll Sean Fincham

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