Sept-Oct 2019: New Research and Development Tax
A new easy-to-use online eligibility tool and guidance material are available to help businesses tap into the new R&D tax incentive.
The incentive aims to encourage more businesses of all sizes and across a range of sectors to invest in R&D.The credit rate is 15% of eligible expenditure up to $120 million. It is available for eligible businesses from the 2019-20 income year.
Companies need to spend at least $50,000 a year on eligible R&D, unless they contract with a research provider approved by us. Contracting allows smaller businesses to access R&D services and claim the tax credit.
If you are thinking of undertaking R&D in the 2020 tax year, you must keep records to support your claim.
The eligibility tool gives businesses a useful indication of whether they should explore their eligibility further.
The guidance material gives further detail on:
the purpose of the R&D tax incentive and how it works
eligible entities
eligible activities
eligible expenditure, and
what records businesses should start keeping now.
You’ll also find a list of approved research providers.
To learn more, click HERE