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.
As part of the recent Victorian state government budget announcement – $50million has been committed to provide low interest loans to R&D claimants to assist with their cashflow. Further details will be provided in course.
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. This legislation has now been passed by parliament.
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:
- Removal of the requirement to generate export income from the businesses 3rd claim onwards.
- 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 and the legislation is passed.
For any enquiries or support:
Melbourne team
Brendan Brown Simone Quin
Brisbane team
John Driscoll Sean Fincham
The information in this page contains general advice and is provided by Primestock Securities Ltd ABN 67 089 676 068, AFSL 239180 (‘Prime’). That advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. You should obtain and read the Product Disclosure Statement (PDS) before making any decision to acquire any financial product referred to in this page. Please refer to the FSG (https://www.primefinancial.com.au/fsg) for contact information and information about remuneration and associations with product issuers. This information should not be relied upon as a substitute for professional advice, and we encourage you to seek specific advice from your professional adviser before making a decision on the matters discussed in this page. Information in this page is current at the date of this page, and we have no obligation to update or revise it as a result of any change in events, circumstances or conditions upon which it is based.
