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

OECD's Annual Corporate Tax Statistics Publication

17 July 2020
The OECD has released the 2nd edition of its annual Corporate Tax Statistics publication.

R&D year end planning during an unprecedented time

15 June 2020
In what has been an unprecedented year so far around the world, business and life in Australia have never been more different.

The R&D Tax Incentive and Your Business

11 June 2020
The Research and Development Tax Incentive is a Federal Government initiative to encourage companies to invest in innovation that benefits Australia.

Change, risk and opportunity: R&D tax claims in the mining and resources sector

11 May 2020
With so much change impacting business, we present a summary for the mining and resource sector highlighting issues that could impact (some positive) their current and future R&D tax claims.

A lift in benefit: Recent measures for depreciating assets used for R&D purposes

5 May 2020
Over the past 12 months, including due to the COVID-19 economic downturn, a number of measures have been introduced by the Federal Government to provide greater access to tax deductions relating to depreciating assets.

Has coronavirus impacted the R&D Tax Incentive – what claimants need to know

31 March 2020
The short answer is, not much. While COVID-19 wreaks havoc on humankind and the economy alike, the R&D incentive may just be the silver lining in a coronavirus shaped cloud.

The Moreton Resources Case - R&D tax incentive in Australia

26 March 2020
The Moreton Resources Case – Finally certainty amongst the uncertainty for the R&D tax incentive in Australia, but only if you know how to find it.  

RSM Australia appoints Sam Mohammad as national head of indirect tax practice

2 March 2020
RSM Australia (RSM), one of the largest mid-tier accounting firms in Australia, has announced the appointment of Sam Mohammad as national head of its indirect tax practice.

R&D tax update | what you need to know in 2020

28 January 2020
30 April 2020 Deadline Approaching A general reminder for year-ended 30 June 2019 companies planning on accessing the R&D Tax Incentive program that you must lodge your R&D Application Form with AusIndustry within ten (10) months of the relevant financial year-end.

Accounting for the R&D Tax Incentive

15 August 2019
The R&D Tax Incentive has been in place since 2011.  However, uncertainty remains over the appropriate accounting treatment for it in financial statements.  Ralph Martin, RSM’s National Technical Director, considers the matter:

Budget "sweeteners" diminished by downside economic risks

22 March 2019
The budget will be an opportunity to provide a suite of sweeteners to voters ahead of the expected May election.

Proposed R&D tax changes don't stand up to Senate scrutiny

14 February 2019
The Senate’s Economics Legislation Committee report was tabled on Monday 11 February and in its collective wisdom, the committee has put on hold proposed changes to the research and development (R&D) tax incentive.

What foreign owners of residential property need to know about lodging their annual return

4 September 2018
In late 2017, the Australian Federal Government introduced an annual vacancy fee to be levied on  foreign owners of residential property, where the property is not occupied or generally available on the rental market for at least 6 months in a 12 month period. 

How the PM’s defeat impacts corporate tax rates

24 August 2018
Following the proposal for reduced tax rates for corporate entities in 2016, the Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 (the Bill) was ultimately defeated in the Senate on 23 August 2018 by a vote of 36 to 30. 

Foreign incorporated companies and changes to the tax ruling - What you need to know.

20 August 2018
Most will remember the 2016 High Court ruling in the case of Bywater Investments Limited.

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