Is your business eligible? Phone (07) 3221 1499

R&D tax incentive and R&D tax credit explained

The current R&D tax incentive regime is being abolished and replaced by new Australian R&D tax credit legislation. 

The new R&D tax credit will consist of two parts:

  • a 45% refundable R&D tax credit (In real terms that means a 150% tax deduction and equivalent to 45 cents/R&D dollar) for companies in loss and under $20 million turnover; and
  • a 40% non-refundable R&D tax credit (i.e. 133% tax deduction and equivalent to 10 cents/R&D dollar) for companies over $20 million turnover.

As a bonus and as a transitional measure until the new program begins, the R&D expenditure cap for the existing 125% R&D tax credit offset will be lifted from $1 million to $2 million.

Eligibility

45% refundable R&D tax credit (150% tax deduction)

will apply to:

  • small companies in loss (and sufficient carried forward losses) and with an annual turnover of less than $20 million; and 
  • have no limit on the level of R&D expenditure undertaken.

40% non-refundable R&D tax credit (133% tax deduction) 

will apply to:

  • companies with a turnover of more than $20 million, regardless of whether they hold the IP, will be entitled to a 133% tax deduction (i.e. 40% non-refundable R&D tax credit).

In gross figures, the new R&D tax incentive reform improves the current tax offset and the tax incentive by 7.5 cents/R&D dollar and 2.5 cents/R&D dollar respectively.

The benefits are real and quite simply amount to money in the bank.

Swanson Reed specialise in Research and Development (R&D) R&D tax credits and R&D tax incentives. Importantly we can quickly assist you in understanding if you are eligible for a grant or tax credit and then maximise your prospects.

Swanson Reed has the skill, experience and knowledge of all R&D tax incentive or R&D tax credit incentives. We do not charge hourly fees, our advice is free of charge, we only get paid when you receive a grant.

Swanson Reed quickly establishes:

  • Which grant, incentive or tax credit
  • Your company's eligibility
  • Your eligible R&D projects
  • Your entitlements $'s.

Swanson Reed maximises your entitlement prospects by:

  • Collating your technical information correctly
  • Preparing your detailed R&D expenditure and financial information
  • Advising and calculating your entitlement to any additional tax deductions
  • Completing and lodging your application within required time frames.

Whilst the Australian Government supports Research and Development (R&D) it does not make claiming an R&D tax credit entitlement easy so that's where we can help. We are R&D tax incentive and R&D tax credit experts. Our R&D tax consultants know the 500 plus page R&D tax credit documentation backwards. Our R&D tax consultants assist some of Australia's top 500 companies with their R&D tax credit entitlements because they know we offer a great value for money service.

The scope of projects that are eligible for R&D tax incentives may be considerably wider than you are aware. Accessing these tax incentives is often considered too complicated by some small to medium enterprises to be worth their while, however, the benefits are real and quite simply amount to money in the bank.

Speak to one of our R&D tax incentive and R&D tax credit consultants (07) 3221 1499 or email info@swansonreed.com.au .