“If You’ve Spent $200K On R&D, You're Entitled To A $75K Cash Rebate From The Tax Office”

Give us just 3 minutes and we'll show you how...guaranteed.

Dear R&D Professional,

It's tough out there right now. Companies are cancelling projects, letting go staff and some are going into survival mode.

The same R&D projects that were enthusiastically approved a year ago, are now having their funding withdrawn.

During a recession, management is most likely to withdraw R&D funding because it's seen as an immediate cost, with the benefit far away in the future.

Your company might already be affected.  Maybe you've heard rumors of "scope changes"...  deliverables being "placed on hold"... the contractor in a nearby team being "let go".

However, it doesn't have to be this way... just follow the 3 steps below.

 There is R&D funding available ... you just need to know where to look..

The Australian Government understands the value R&D projects bring to the Australian economy. They know that R&D investment is the primary driver behind productivity gains and better living standards. 

For this reason they've introduced the R&D Tax Concession program...the primary Commonwealth Government initiative to increase the amount of R&D undertaken in Australia. The program provides assistance to companies through credit and offsets, in some cases giving them back money to continue R&D activity.

However, just because the Government supports R&D activity, it doesn't mean that they make it easy for companies to claim this benefit. In fact, the full R&D Tax Concession documentation is 500+ pages and written more for tax experts than for companies applying for R&D funding.

This is where we come in... by helping clients understand what can or can't be claimed.

To see how we can help your company Contact Us and we'll get back to you within 24 hours with a number of options or download the R&D Tax Concession Flyer.

To Your R&D Success,

Ross Turetsky MBA, BCom, BIS
Managing Director, Grant Solutions

  Program Overview

The R&D Tax Concession is the principal Commonwealth Government initiative to increase the amount of research and development (R&D) undertaken in Australia. The aim is to encourage innovative, competitive and export-oriented Australian industries.

The concession is available to all Australian companies and offers the following:

• A tax deduction of up to 125% of expenditure incurred on R&D activities
• An R&D Incremental (175% Premium) Tax Concession for those companies increasing their R&D expenditure and who have a three-year history of registering and claiming the 125% Tax Concession
• An R&D Tax Offset for companies with group turnover under $5 million and a grouped expenditure of up to $1 million for the year
• an R&D Incremental (175% International Premium) Tax Concession (for companies belonging to a multinational enterprise group) for additional R&D expenditure on behalf of a grouped foreign company above a rolling three-year average of expenditure.

Eligibility Details

If you can answer YES to the following questions, you are likely to be eligible for the concession:

• Are you a company incorporated in Australia and not acting as a trustee for a trust (other than for a public trading trust)?
• Have you prepared and maintained an R&D plan in accordance with Innovation Australia’s guidelines?
• Have you maintained contemporaneous records that substantiate the carrying on of these activities?
• Do the R&D activities you have undertaken involve the following:
  
  1. A technical problem that cannot be resolved on the basis of publicly available information
  2. An original idea to solve the technical problem
  3. Systematic experimentation (for example, testing or trials) to resolve the technical uncertainty?

• Will the R&D activities be to the benefit of the Australian economy and the results exploited on normal commercial terms?

• For Offset and Premium claims, does your company comply with the necessary grouping provisions?

• If the systematic, investigative and experimental activities of the project are for the development of computer software, is the resultant software intended for ‘multiple sale’?

• Does your company have appropriate written documentation for the undertaking of the R&D activities?

• Has your company incurred annual eligible expenditure on R&D activities of $20,000 or more? If not, has the company contracted the R&D activities to a registered research agency?

Application Details

Annual registration of R&D activities with Innovation Australia is a prerequisite for companies claiming the tax concession. Applications must be lodged annually within 10 months of the end of the company’s year of income.

After registering with Innovation Australia, companies can claim the concession by completing the Australian Taxation Office R&D Tax Concession Schedule and the relevant labels in their tax return.

"Sweep Spot" Benefit

While the Research & Development (R&D) Tax Concession offers a tax saving of $75 (for every $1000) spent on R&D activities, the Offset provides a cash credit of up to $375 for every $1000 spent on R&D activities. This means that companies may be able to get up to $375 (for every $1000 spent) on R&D back directly in cash.