If your company is carrying out structured research and development activities you may be able to take advantage of this non-dilutive funding and significantly reduce the cost of your investment.
We have deep expertise and know-how in guiding early-stage and established SMEs’ through the end-to-end process of setting up and applying for an incentive for activities supporting consumer device, patent or product R&D in Australia.
While there is a perception that research and development is carried out only by scientists in laboratories, the application of the R&D Tax Incentive is much broader. Some of our clients who have taken advantage of R&D Tax Incentives come from industries such as:
- Medical Device Engineering
- Information Communication Technologies (ICT)
- Food Science
Research & Development (R&D) Tax Incentives In Australia
Here’s what you can take advantage of when you carry out eligible R&D in your industry
- The Australian Federal Government’s R&D Tax Incentive program has now made Australia one of the most attractive locations in the world for companies to undertake their R&D activities. Over AUD$1.8 billion in benefits available annually, and to date is the most far reaching and accessible program to support and encourage companies to undertake R&D activities.
- The R&D Tax Incentive can provide eligible applicants with a cash refund of up to 43.5% of the amount spent annually on eligible R&D activities.
- Background and project intellectual property (IP) can now also be owned by the foreign holding company(1).
The principle benefit under the program comes in the form of a tax offset which is either 43.5% refundable (payable in cash) or 38.5% non-refundable (carried forward against future tax liabilities).
To qualify for the refundable tax offset the eligible entity must have annual grouped turnover of less than AUD $20 million.
The R&D expenditure subject to the tax offset is not deductible for tax purposes and therefore attracts company tax. The after tax benefit therefore depends on the grouped turnover and tax position of the eligible entity as shown below:
About Prime Financial Group
Prime is an accounting and business advisory firm that has been providing specialist R&D tax services for more than 15 years. During this time, we have assisted many SMEs across a broad range of industries obtain in excess of $200 million in R&D cash refunds.
Keeping across the various regulatory changes and evolution of the rules over this time, has enabled us to proactively inform and advise our clients and contacts of new opportunities that arise, including the changes to foreign ownership rules.
We work with start-up, growth businesses and venture capital backed enterprises both in Australia and overseas to help them maximise their claim opportunities and get the much needed cash to support their commercial endeavours. This includes obtaining overseas findings, providing advice on establishing Australian companies and managing the ongoing accounting and compliance support.
The Next Step
Find out if you’re eligible to claim the R&D Tax Incentive. For advice about your current or proposed R&D activities, contact us to arrange a free initial discussion by phone, webinar or Skype.
Our R&D Tax Incentive experts are Brendan Brown and Simone Quin.
- International transfer pricing rules may reduce the amount of the 43.5% benefit where project IP is not owned by the Australian subsidiary company.
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