Research & Development Tax Concession
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.
The R&D Tax Offset is available for companies whose expenditure exceeds $20,000 per income year and
• has a grouped expenditure of up to $1 million for an income year between 2001-02 and 2008-09;
• has a grouped expenditure on R&D undertaken in 2009-10 that is up to $2 million.
• annual group turnover is less than $5 million.
Who is the program aimed at?
The deadline for lodging an application for registration is 10 months after the end of a company’s income year. This means that companies with a 30 June 2009 balance date who wish to apply for the R&D Tax Concession for the 2008-09 income year must lodge their registration application with AusIndustry by Friday 30 April 2010. When mailing your application, you should allow sufficient time for delivery. Please note that Innovation Australia (the Board) is unable to grant extensions of time for lodgement. You will receive an acknowledgement confirming receipt of your application or an electronic receipt if your application has been lodged online.
Please contact our office as soon as possible if you intend to use the R&D Concession as time to register is running out!