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

Innovation Investment Tax Incentive

10 June 2016
On 1 July 2016 the Government’s new tax incentive to support innovation investment will come into effect.  The Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016 was passed earlier this year and is a cornerstone of the National Innovation and Science Agenda (NISA), released by Prime Minister Turnbull late last year.

Budget 2016 for R&D and Innovation

3 May 2016
The support for innovation in the 2016/17 Budget can be simply summarised as disappointing tinged with relief in a lack of cutbacks. There are only very minor announcements for innovation support through specific focuses, such as $200,000 for FinTech and $2.4 million for Landing Pads in Singapore and Berlin.

Budget 2016 for Corporations

3 May 2016
Cuts to Company Tax Rate The company tax rate will be reduced to 25% over the next 10 years. The company tax rate will be progressively reduced to 25% between the 2016/17 and 2026/27 income years.

National Innovation and Science Agenda

12 September 2015
A detailed analysis of what you need to know about Prime Minister Malcolm Turnbull's highly anticipated $1.1 bn innovation strategy The Federal Government has released its much anticipated Innovation Agenda but what does this mean for business and individuals.  The framework of the government’s innovation policy focuses on four key pillars:

R&D expenditure - is it really incurred?

7 September 2015
Last week, the full federal court in Commissioner of Taxation v Desalination Technology Pty Ltd [2015] FCAFC 96 overturned the decisions of the Administrative Appeals Tribunal and the single judge of the federal court in denying the taxpayer a research and development (R&D) deduction for amounts incurred by an associate party on behalf of the taxpayer.

RSM’s response to Vision for a Science Nation: Australia's future

2 September 2015
While the R&D Tax Incentive is one of the effective mechanisms for stimulating innovation in Australia, Science Technology, Engineering and Mathematics (STEM) competitiveness can be improved by enhancing and developing new incentives to increase Australia’s investment in innovation, according to RSM.

2015-16 budget for research and development

12 May 2015
There was minimal content in the Budget that will have an impact on Australian innovation. The following are the relevant key Budget announcements: Crowd funding

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