ARTICLE · 07 AUGUST 2018

Australia Announces Changes To Tax Incentive For Research And Development (R&D)

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Proposed changes to R&D tax incentives regime in Australia will reward R&D intensity. Companies operating in Australia can benefit significantly if they know how to tap into this opportunity.

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Proposed changes to R&D tax incentives regime in Australia will reward R&D intensity. Companies operating in Australia can benefit significantly if they know how to tap into this opportunity.

An overhaul of the R&D tax incentive legislation in Australia has been proposed which will have the effect of rewarding businesses with greater R&D intensity i.e. higher R&D spend as a proportion of total spend. The changes, once implemented, will apply to financial years commencing on or after 1 July 2018.

The changes were proposed by the federal government in the 2018-19 budget announcement on 8 May 2018 and draft legislation was released on 29 June 2018. The following is a snapshot of the changes.

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