Should the R&D tax incentive be on your RaDar?
Innovation, be it in the form of a new or improved product or even a brand new business model, has fuelled the growth of many of our Technology Fast 50 entrants, and is now seen as a key driver of company growth globally.
Due to the importance of innovation for the Australian economy, a new R&D Tax incentive program was introduced in July 2011 by the Federal Government to increase financial assistance for companies conducting R&D predominantly in Australia, substantially increasing the tax benefits available. Rather than a tax deduction, the new program provides either a 40% non-refundable tax offset or a 45% refundable tax offset for eligible R&D expenditure.
The eligibility criteria regarding this new program is purposefully broad, as it is intended to apply to all industries. To assist companies in understanding the potential to access the new incentive, Deloitte’s R&D and Government Incentives team has developed RaDar – an online survey tool that provides some high level guidance on how the program may apply to your business by asking some simple questions regarding your business and the nature of your development activities.
The survey only takes a few minutes to complete, and provides a report upon completion as to how the program applies to your circumstances.
A member of the Deloitte R&D and Government Incentives team member may be in touch subsequent to the survey to discuss the opportunities available under the program in more detail.