Covid-19 & Research and Development (R&D) Incentive

The R&D Tax Incentive is a program delivered by both AusIndustry and the ATO aiming at encouraging industry in conducting R&D activities that might not otherwise be conducted. 

It is a self-assessment program, available for eligible businesses in all industry sectors that conduct at least one experimental activity for the purpose of generating new knowledge, involving the application of a systematic progression of work proceeding from investigation of technical hypothesis in an experiment leading to a logical conclusion, in which the outcome of experiment cannot be known in advance on the basis of existing knowledge.

Why this could be important for you?

In this unprecedented and very concerning COVID-19 situation, cashflow is important for businesses.

The benefit of accessing the R&D Tax Incentive program is in the form of R&D Tax Offset. For example, if you are a business with an aggregated turnover of less than $20 million, not in a taxable profit position and conducting eligible R&D activities, you can claim 43.5 cents in the dollar out of the expenditure incurred on eligible R&D activities. 

This means if you claim $100,000 eligible expenditure, you can get $43,500 cash refund.

How do I apply?

Businesses must submit an R&D Application to AusIndustry within 10 months of the end of the company’s income year and submit the Tax Return (with a completed R&D Schedule) to the ATO.

When is the deadline?

For a business looking to claim 30 June 2019 R&D activities – AusIndustry has extended the deadline to 30 September 2020.

For a business looking to claim 30 June 2020 R&D activities – Application opens from 1 July 2020.

Contact Us

If you would like to know more about R&D Tax Incentive, feel free to get in touch.

For businesses who have submitted their FY2019 R&D, our team is able to assist with the preparation of your 2020 R&D claim ASAP for lodgement on 1 July 2020.

Address : Level 25, 300 Barangaroo Avenue Sydney 2000

Email : [email protected]

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