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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 & ResearchReports Industry Minister Is Considering Changes To The Administration Of The R&D Tax Incentive
InnovationAus.com has reported that Industry Minister Karen Andrews is investigating potential changes to the administration of the R&D Tax Incentive to give companies greater certainty about their claims. The report of potential changes has come following recent comments by Small Business […]
Tax Commissioner Comments On R&D Tax Incentive Compliance Difficulties
During a presentation to the Council of Small Business Organisations of Australia National Small Business Summit, tax commissioner Chris Jordan has commented that there is a structural problem with the operation of the R&D Tax Incentive, particularly surrounding the self […]
