RSM Australia

R&D Tax Incentive Reform - Call for submissions

R&D tax reforms, as announced in the 2018-19 Federal Budget, are steps closer to implementation with the Treasurer and Minister for Jobs and Innovation releasing draft legislation proposed to enact the changes. 

The Government is seeking feedback on the draft legislation. The consultation process is imperative to ensure effective implementation of the reforms and insight into their practical application.  R&D tax

You will find a quick summary of the drafted changes below and once we have completed our submission, we will make that available too: 

The expenditure threshold

  • Has been increased to $150 million, previously at $100 million.
  • The R&D expenditure threshold will become a permanent feature of the law where existing legislation stated a cease date of 1 July 2024.

The R&D tax offset for small-medium R&D entities

  • Annual refund cap of $4 million for the offset (exceptions for clinical trials).       
  • Reset of R&D tax offset rate (for entities with an aggregated turnover < $20 million) to their corporate tax rate plus a 13.5 percent premium.

The R&D tax offset for large R&D entities

  • Reset of R&D tax offset rate (for entities with an aggregate turnover > $20 million) to their corporate tax rate plus a premium based on the level of their incremental R&D intensity for their R&D expenditure.        


For more information

Please get in contact with Stephen Carroll to discuss your suggestions or clarify the consultation process.

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