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R&D Tax Incentive

Research and development (R&D) tax incentive provides a tax offset for eligible R&D activities and is targeted toward R&D that benefits Australia. The incentive, which came into effect on 1 July 2011 and replaces the R&D tax concession, is geared towards encouraging companies to engage in R&D.

If you wish to claim the tax incentive on your 2013/2014 tax return,  you must register with AusIndustry before 30 April 2015. 

Once registered, you may then be entitled to claim either a refundable tax offset of 45 per cent or non-refundable tax offset of 40 per cent of your eligible R&D expenses incurred in 2013/14.

Note that from 1 July 2014, the rates of the refundable and non-refundable offsets will be reduced by 1.5 percentage points to 43.5 per cent and 38.5 per cent respectively in line with proposed reductions in the corporate tax rates as part of the 2014-15 Federal Budget announcements.

Talk to your BBA Advisor to see if you are eligible, and how to proceed with your claim. You can find out more at the following links:

AusIndustry: http://www.ausindustry.gov.au/programs/innovation-rd/RD-TaxIncentive/Pages/default.aspx

ATO: https://www.ato.gov.au/Business/Research-and-development-tax-incentive/