Annual R&D registrations for companies with a 30 June year end are due to be lodged with Aus Industry by 30 April.
The R&D concession provides companies with an additional income tax deduction of 25-75%. For some companies in losses with less than $1,000,000 of R&D a tax offset (cash refund) is available for both the tax deduction for the expenditure and the additional 25% and 50% R&D deduction e.g. $100,000 of R&D will provide a refund of at least $37,500.
Broadly, to qualify as R&D the expenditure must be on activities that are systematic, investigative and experimental and involve either
- innovation; or
- high levels of technical risk
and are carried out for the purpose of
- acquiring new knowledge; or
- creating new or improved materials, products, devices, processes or services.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
