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R&D Eligibility Assessments
Adequately assessing a potential R&D claim at the beginning is one of the most important parts of the R&D claim process.
In Australia, there are two main R&D Tax Offsets available to companies:
- A 43.5% refundable tax offset (equivalent to a 150% deduction) to eligible entities with an aggregated turnover less than $20 million per annum.
- A 38.5% non-refundable tax offset (equivalent to 133% deduction) to eligible entities with an aggregated turnover greater than $20 million per annum.
What can I claim?
R&D activities need to meet certain legislative requirements for them to be deemed eligible ‘core’ activities by AusIndustry. The basic 3 requirements of a ‘core’ activity are illustrated in the below flowchart.
How much can I get?
| No Claim | 38.5% R&D Tax Offset | 43.5% R&D Tax Offset | |
| Assessable Income | $200 | $200 | $200 |
| Deduction/ R&D Spend | ($100) | ($100) | ($100) |
| Deductions Claimed/ Forfeited | $100 | — | — |
| Taxable Income | $100 | $200 | $200 |
| Gross Tax (30%) | (30%) | (30%) | (30%) |
| R&D Tax Credit | — | $38.50 | $43.50 |
| Net Tax Payable | ($30) | ($30) | ($30) |
| Benefit yield of R&D Spend | 8.5% | 13.5% |
Calculate your Benefit
Industry Specific Audit Issues
AusIndustry undertakes periodic reviews of R&D activities and the documentation used to substantiate those activities. The below industry specific checklists contain some of the information AusIndustry may review or request in the event an activity assessment is undertaken.
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News & Research
News & Research
News & ResearchGovernment’s First Comments on R&D Tax Incentive Since Election
The former (and likely to be ongoing) Minister for Industry, Science and Technology, Karen Andrews has been interviewed in today’s Australian Financial Review. This represented the Morrison government’s first comments on the R&D Tax Incentive since the coalition’s return to […]
Federal Election 2019 – Impact of Result on R&D Tax Incentive
Over the past six months, the R&D Tax Incentive became a discussion point and the major political parties have differed in their views. Labor sought to position themselves as prioritizing the R&D Tax Incentive over the coalition government, and had made […]
