Research and Development Tax Incentive (R&D)

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Research and Development Tax Incentive (R&D)

Offset your R&D costs to help innovate and grow your business.


R&D Tax Incentive services at RSM
R&D Tax Incentive


R&D Tax Incentive

Business Growth services at RSM

The Research and Development Tax Incentive (R&DTI) offers a tax offset for companies conducting eligible R&D activities.

It encourages investment in R&D to help your company to grow and innovate which generates benefits for the Australian economy.

Our tax advisers can help you has extensive experience in successfully preparing applications and obtaining R&D benefits for activities undertaken to acquire new knowledge; or information in relation to new or improved materials, products, devices, processes or services.

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Whether you have a great new business idea, an appetite to grow an existing business, or you need to save a struggling one, we can help you.

Assisting businesses in accessing the R&D tax incentive

Many people still do not realise that R&D tax applies to 'real world' innovation, not just high tech science projects. Companies developing and improving products and processes are equally eligible.R&D tax incentive support

In addition, many people do not realise that companies with tax losses (with grouped turnover less than $20m) are eligible to receive cash from the ATO, not just increases to future tax losses.


Research and Development Tax Incentive solutions for businesses of all industries

We have an experienced team of R&D tax advisers with mixed science and accounting qualifications and backgrounds. Our clients range from startups to multinational corporates, and cover industries from agriculture to banking.

We are active supporters of the Innovation Community, sponsoring events, providing speakers and committee members to a wide variety of associations and groups.

We advise clients from iconic multi-nationals through to nimble start-ups, and everything in between. In addition to supporting our clients with claim compliance and preparation, from start to finish, we assist with reviews and audits associated with R&D Tax Incentive claims.

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What R&D tax incentives are available?

  • A 43.5 per cent refundable tax offset for eligible entities with an annual aggregated turnover of less than $20 million, and which are not controlled by income-tax exempt entities, for expenditure on eligible R&D activities in Australia; and
  • A 38.5 per cent non-refundable tax offset for all other eligible entities for eligible R&D expenditure.
RSM can assist with Identifying eligible R&D activities, including classification of ‘core’ and ‘supporting’ activities
 

For financial years starting after 1 July 2021:

  • A 43.5 per cent refundable tax offset for eligible entities with an annual aggregated turnover of less than $20 million, and which are not controlled by income-tax exempt entities, for expenditure on eligible R&D activities in Australia; and
  • A non-refundable R&D tax offset rate based upon the intensity of your R&D expenditure as a proportion of total expenditure for the year:
    • An R&D intensity up to 2% receives a tax offset equal to your company tax rate plus a 8.5% premium
    • Any expenditure which exceeds the 2% intensity threshold will attract a premium rate of up to 16.5% (i.e. up to an additional 8% incentive for the R&D expenditure above the 2% intensity threshold).
RSM offers Safe Harbour strategies

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Webinar: R&D Tax Incentives and Capital Access

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Australian technology startups have certainly shone on the global stage in recent years.

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