On 9 May 2023 Treasurer Jim Chalmers handed down the 2023-24 Federal Budget aimed at addressing challenging headwinds including higher interest rates, inflation and cost of living pressures. A modest surplus of $4.2 billion – the first surplus in 15 years – is a welcome surprise built on tailwinds: favourable commodity prices, a strong labour market and higher migration in the short-term.
An R&D Tax Offset, also known as the R&D Tax Incentive, is available in respect of research and development (R&D) expenditure incurred in income years commencing on or after 1 July 2011. It currently provides for a 43.5%
refundable tax offset for eligible R&D entities with an aggregated worldwide
turnover of less than $20 million per annum that are not 50% or more
controlled by exempt entities (refundable R&D offset); or a non-refundable
38.5% tax offset for all other eligible companies.