Deadline for registration
Companies that have undertaken R&D activities during the financial year ended 30 June must register their activities with AusIndustry by the following 30 April to qualify for the R&D Tax Incentive. If the deadline falls on a weekend or public holiday the effective final lodgement date is the next business day.
Non-30 June balancing companies have a registration lodgement date which is the end of the tenth month following the substituted accounting period end.
The Current R&D Incentive Scheme
(as applicable since 1 July 2011)
The existing R&D Tax Incentive scheme provides two core components:
- a 43.5% refundable tax offset on eligible expenditure for eligible entities less than $20 million turnover, or
- 38.5% non-refundable tax offset for eligible entities with turnover of $20 million or more
For financial years up to 30 June 2016 the the refundable offset rate was 45% and the the non-refundable offset rate was 40%.
The research and development tax incentive provides a tax offset for eligible R&D activities and is targeted toward R&D that benefits Australia. The incentive came into effect on 1 July 2011 to replace the former R&D tax concession.
To be eligible for the R&D tax incentive you must be an R&D entity, engaging in eligible activities and in most cases have notional R&D deductions of at least $20,000.
Pre July 2011 – and the transition from the R&D tax concession to the R&D tax incentive
Prior to 1 July 2011, the R&D tax concession allowed companies to claim a tax deduction of up to 125% (and in some cases up to 175%) of eligible R&D expenditure.
R&D expenditure incurred in respect of R&D activities performed prior to 1 July 2011, continue to be claimed under the R&D tax concession. See ATO detailed notes.
- Developments in R&D: the year in review – PWC 1 April 2016
- ATO Information and Eligibility Guide
- Research and development tax incentive Fact Sheets
This page was last modified 2018-10-19