ARTICLE · 24 SEPTEMBER 2009

Consultation On Measures To Restrict The R&D Incentive From 2010

Moore Australia

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The first consultation paper on the 2009 Federal Budget R&D measures has been released. The intention is to fund the increase in R&D incentive by tightening the definition of R&D.

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The first consultation paper on the 2009 Federal Budget R&D measures has been released. The intention is to fund the increase in R&D incentive by tightening the definition of R&D. This will have a profound impact across the board on the eligibility of companies to access the R&D tax incentives and the amount of expenditure upon which claims can be made.

The proposed measures are to be effective from 1 July 2010 and include:

A 45% refundable credit (equivalent to a Tax Concession of 150%) for businesses with an annual turnover of less than $20 million, and

A 40% non-refundable credit (equivalent to a tax concession of 133%) for companies with a turnover of more than $20 million and companies undertaking R&D in Australia where the intellectual property is held offshore.

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