When it comes to policies bridging the gap between the ‘laboratory’ and the marketplace, companies will typically look to either grant funding or tax incentives. Previously, we’ve delved into the differences between government grants and the Research and Development (R&D) tax incentive in Australia. However, where support for R&D is called for, an important question remains: should reliance by placed on cash support (grants), or on the tax system as a mechanism to deliver credits or allowances (or a combination […]
Ultimately, investing in research and development (R&D) is key to increasing innovation, productivity and competitive advantage. It is not only beneficial for businesses, but is also advantageous for the economy of our country. In fact, for many multinational companies, Australia has become the centre of their global R&D activities. This is primarily due to a highly skilled workforce, suitable infrastructure and a favourable R&D tax incentive program. Australia’s R&D Tax Incentive, which has replaced the R&D Tax Concession since the 1st of […]
Undeniably, the rules and regulations surrounding the Research and Development (R&D) tax incentive may be bewildering for some. This is particularly the case when distinguishing the eligible R&D activities. To clarify, both ‘core’ and ‘supporting’ R&D activities can be claimed – however, activities must show that they are undertaken for the dominant purpose of supporting R&D activities or generating new knowledge, rather than a commercial or other purpose.  With the April 30 tax deadline looming, the importance of correct compliance is […]
Despite the fact that the Research & Development (R&D) tax incentive claim process can seem quite convoluted, the benefits of doing it properly are well worth the effort. But just how exactly is the benefit calculated and what do business owners gain in pocket? The answer to this depends greatly on the size and nature of the company. To elaborate, the R&D Tax Incentive is provided in Australia through a tax based incentive program whereby the Australian Government provides companies […]