From the AusIndustry Programs Section:
- On 24 August 2011, the bills to establish the new R&D Tax Credit were passed by Parliament. The final step in the legislative process is Royal Assent by the Governor-General.
- On 2 September 2011, Innovation Minister, Senator Kim Carr announced the R&D Tax Credit will now be known as the R&D Tax Incentive. The name R&D Tax Incentive reflects the program’s overall objective of encouraging more companies to engage in research and development (R&D) in Australia.
Information Sessions:
During September and October AusIndustry and the ATO* will hold public information sessions about the R&D Tax Incentive.
*subject to royal assent.
AusIndustry and the ATO, as administrators of the R&D Tax Incentive, will release guidance material for the program following Royal Assent.
The R&D Tax Incentive legislation will be supported by Regulations and Decision-making Principles. Application forms will not be available until the Regulations have been finalised. Information on the Regulations and Decision-making Principles is available from the Department of Innovation website.
Description:
The R&D Tax Incentive applies to R&D activities and expenditure for income years commencing on or after 1 July 2011 and replaces the R&D Tax Concession.
The program provides a targeted tax offset designed to support more companies to invest in R&D activity.
The R&D Tax Incentive has two core components:
a 43.5% refundable tax offset (equivalent to a 150 percent deduction) to eligible entities with an aggregated turnover of less than $20 million per annum
a non-refundable 38.5% tax offset (equivalent to 133 percent deduction) to all other eligible entities.
%
Refundable tax offset
%
Non-refundable tax offset
Information on the Government’s Innovation Agenda, Powering Ideas – An Innovative Agenda for the 21st Century, is available at the Department of Innovation website.