Australia and its global peers have experienced a rapid rise in interests rates over the past 12 months to combat high and persistent inflation. In recent months, Australia’s RBA Governor and Treasurer have begun to mention the importance of improving Australia’s productivity as a means of addressing the inflation issues. The Australian and AFR newspapers today have noted that: A 4.6 per cent plunge in labour productivity in the year to March came as figures released by the Australian Bureau […]
The R&D Tax Incentive includes a related party integrity provision whereby if a company incurs R&D expenditure to an associate, it must pay that amount in the same year to claim a notional deduction for that amount in that year (provided all other eligibility requirements for the R&D tax incentive are met). Associates are those entities that, by reason of family or business connections, might appropriately be regarded as being associates of the R&D entity, and relevant examples of the […]
A company’s rate of R&D tax offset and whether it is refundable or not depends primarily on the R&D entity’s aggregated turnover: If an entity’s aggregated turnover is less than $20 million and it is not controlled by any exempt entities, then the company can claim the refundable tax offset. The refundable tax offset rate is equal to the company’s corporate tax rate plus an additional premium rate of 18.5%. If an entity’s aggregated turnover is $20 million or more, […]
Companies seeking to claim expenditure for overseas activity incurred by an Australian company under the R&D Tax Incentive must apply separately to claim these costs by lodging an Overseas Finding Application with AusIndustry. In addition to general eligibility criteria, there are specific and extensive rules to determine whether expenditure on overseas activities is eligible under the R&D Tax Incentive. Generally, R&D activities conducted overseas can only be eligible for the R&D Tax Incentive where: The activity to be conducted overseas has a […]