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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 & ResearchCOVID-19 and the R&D Tax Registration Deadline for YE 30 June 2019 (AusIndustry Announcement)
Our thoughts are with all who are directly impacted by the Coronavirus crisis, and we remain optimistic that the resolve of Australians will prevail. Swanson Reed has taken measures to protect our staff and clients, and will be fully functional […]
Coronavirus Information and Support for Business
The government has, over recent weeks, announced a wide variety of stimulus measures to assist business cope with the Coronavirus situation. The stimulus offered is from multiple levels of government and for multiple purposes. A summary of the measures is […]
