What is the R&D Tax Incentive?
The Research & Development (R&D) Tax Incentive is an Australian Government program that encourages local businesses to invest in research and development by undertaking ‘core’ or ‘supporting’ R&D activities. This particular incentive is a broad-based, market driven program accessible to all industry sectors.
“The R&D Tax Incentive aims to boost competitiveness and improve productivity across the Australian economy. The program provides a tax incentive for industry to conduct experimental activities, in a scientific way, for the purpose of generating new knowledge,” source: business.gov.au
R&D activities must meet certain criteria to be eligible for the R&D Tax Incentive, with each activity being categorised as either core R&D activities or supporting R&D activities. Generally, R&D activities are those that are conducted for the purpose of acquiring new knowledge including knowledge or information concerning the creation of new or improved materials, products, devices, processes or services. Often these activities are experimental whose outcome is not known or determined in advance on the basis of current knowledge, information or experience.
Kickstart Advisory manages your business’ eligibility process as required by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office (ATO) and as such, we will determine the following:
• what activities within your business are core activities,
• what supporting R&D activities you have undertaken,
• what activities may be directly related, and
• what activities are subject to the dominant purpose requirement.
Kickstart Advisory ensures that determining your eligibility throughout the application process is straightforward and simple, contact us today to get started.
Who is eligible to apply?
Under the R&D Tax Incentive, your business must be eligible to register R&D activities and claim the incentive in any given year.
Kickstart Advisory manages the self-assessment process required by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office (ATO) and as such, we will determine the following to establish your business’ eligibility:
• whether your business is an R&D entity,
• what eligible ‘R&D’ activities you have undertaken,
• identification of expenditure incurred or assets used in the activities, and
• What records you have kept that describe what you did, the expenditure you claimed and we will determine the expenditure incurred, the assets used and the activities conducted.
Kickstart Advisory ensures the entire application process is streamlined and hassle-free, contact us today to get started.
What are the benefits?
The underlying benefit to your business is that you receive compensation for undertaking R&D activities that can assist you with the innovation, product enhancement or future developments of your business.
The R&D Tax Incentive has two core components:
• a 45 per cent refundable tax offset for eligible entities with a turnover of less than $20 million per annum, provided they are not controlled by income tax exempt entities.
• a non-refundable 40 per cent tax offset for all other eligible entities. Unused non-refundable offset amounts may be able to be carried forward to future income years.
Have some incredible ideas but don’t know where to start? Kickstart will work with you throughout the entire application process, ensuring that there is little to no disruption to your business. While you continue to focus on the future, we will take care of the rest. Contact us today.
Additional opportunities for your business
We have successfully obtained funding for 100s of Australian businesses since our inception including those operating within the manufacturing, IT, agribusiness and export industries. We specialise in Research & Development Grants and Export Market Development Grants however we will identify all areas of opportunity for your business' future growth.
Feel free to contact us with any questions you have in relation to other types of incentives and grants.
Your Tax Incentives
The Research & Development (R&D) Tax Incentive is a targeted, generous and easy to access entitlement program that helps businesses offset some of the costs of doing R&D.
Kickstart Advisory manages the assessment process required by AusIndustry (on behalf of Innovation Australia) and the ATO and as such, we assist you in determining your eligibility.
The underlying benefit to your business is that you receive compensation for undertaking R&D activities that can assist you with innovation, product enhancement or future developments.