Free Call: 1800 792 676
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.
Quick Contact
News & Research
News & Research
News & ResearchDraft AusIndustry Determination on Clinical Trials (Phase 0-III) for an Unapproved Therapeutic Good
AusIndustry has recently released a draft Industry Research and Development (clinical trials, Phase 0, I, II, III for an unapproved therapeutic good) Determination 2021 for consultation and feedback. This is the first R&D Tax Incentive determination published, and AusIndustry noted […]
ATO Release Finalised Tax Ruling TR 2021/9 (Adjustments to R&D Claims for Job Keeper)
In July 2020, The ATO released TD 2020/D1: Income tax: notional deductions for research and development activities subsidised by JobKeeper payments. The ruling outlined the need for companies that are subject to both the R&D Tax Incentive and JobKeeper to […]
