R&D Tax Incentives

We Maximise your tax savings with R&D Tax Incentives

Maximise your tax savings by taking advantage of Australia’s generous R&D tax incentives with the expert guidance of our R&D specialist tax consultants. Companies with an aggregated turnover under $20 million can receive a refundable offset of up to 43.5% of eligible R&D expenditure. Larger companies (turnover $20 million or more) can claim a non-refundable tax offset of 38.5% on eligible R&D expenses. Eligible R&D expenditure includes direct and indirect R&D expenses, think salaries, prototypes, overheads, lease costs, contractor fees, and more.

We guide you through the process of claiming the R&D Tax Incentive

Step 1: Initial Eligibility Assessment

Step 2: Document preparation and submission of R&D activities with AusIndustry

Step 3: Preparation and lodgement of R&D tax schedule in the company’s tax return.

Step 4: Direct cash rebate or tax liability reduction.

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Frequently Asked Questions

What is the R&D Tax Incentive?

The R&D Tax Incentive is the largest Australian government incentive program for business in Australia, aimed at encouraging businesses to undertake R&D activities. The program provides eligible businesses to claim a tax offset or refund for eligible R&D expenditure. Eligible businesses with an aggregated turnover of less than $20M are entitled to claiming a refundable tax offset of 43.5% of eligible R&D expenditure. Entities with an aggregated turnover above $20M are entitled to receive a tax credit on 38.5% of eligible R&D expenditure.

How do I know if I am eligible for the R&D Tax Incentive?

To be eligible for the R&D Tax Incentive, your business must be incorporated in Australia and undertake eligible R&D activities. Generally, you need to have spent at least $20,000 on eligible R&D activities in the relevant income year. Eligible activities typically involve systematic experimentation or innovation to generate new knowledge, products, processes, or services. If you’re unsure about your eligibility, our R&D tax consultants can assess your activities and guide you through the process.

What activities can be claimed as R&D expenditure?

The R&D Tax Incentive covers a broad range of direct and indirect expenses related to eligible R&D activities. Here’s a breakdown:

Direct R&D Expenditure	Indirect R&D Expenditure
Salaries and wages for R&D staff	Overheads
Cost of materials and prototypes	Lease costs
Contracted R&D services	Certain depreciation expenses
Testing and analysis	Utilities and administrative fees
Laboratory equipment	Contractor fees

Can I claim the R&D Tax Incentive over multiple years?

Yes. You are entitled to claiming the R&D Tax Incentive over multiple years provided that you are conducted eligible R&D activities in Australia.

Why do I need an R&D tax consultant to help with my application?

AusIndustry and the ATO both publish guidance on the requirements of the R&D Tax Incentive, and how to apply for the programme. However, achieving a fully compliant application can be complex without the aid of a technical specialist.

Also, as the R&D Tax Incentive Program is administered on a a self-assessment basis, you may not necessarily be aware if your application is non-compliant – you may only find out if this is case should AusIndustry or the ATO review your application.

Therefore, to avoid this risk it is highly recommended that you seek the consultation of an R&D Tax Incentive consultant, who can ensure that your application is fully compliant upon submission.