R and D tax incentive for Australian Businesses
January 1, 2022
R&D tax incentive for Australian businesses
The Australian Government's R&D tax incentive provides targeted offsets that aim to encourage more companies to engage in R&D, in order to contribute to a stronger economy.
The incentive is designed to encourage research and development activities that companies may not otherwise do due to uncertain returns and risk.
What's involved?
The R&DTI offers two levels of tax offset depending on your aggregated turnover:
- a 43.5% refundable tax offset for eligible companies whose annual aggregated turnover is less than $20 million.
- a 38.5% non-refundable tax offset to eligible companies whose annual aggregated turnover is more than $20 million. (entities may be able to carry forward unused offset amounts to future income years).
Who is eligible?
The R&D Tax Incentive is a self-assessment program.
The Federal Budget has been released, and we've outlined the key elements that you need to know.
Weathering the storm? Small businesses are particularly vulnerable in tough economic times. We can help with strategies for healthy cash flow, so you can continue to thrive.
“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke
