R&D rate reduction - what it means

The rates of the refundable and non-refundable R&D tax offsets were reduced by 1.5 percentage points last year.

This resulted in the refundable offset being reduced to 43.5% and the non-refundable offset was reduced to 38.5%.

The refundable offset is available to R&D entities with an aggregated annual turnover of less than $20 million (unless controlled by one or more tax-exempt entities).

The non-refundable offset is available to R&D entities that do not qualify for the refundable offset.

Note: The Tax Laws Amendment (Research and Development) Bill 2013 prevents companies with aggregated assessable income of $20 billion or more accessing the offset.

This claim can be very lucrative; however, rules apply process and financials. Strangely, trusts are excluded, so set up a company or use your trustee company but seek advice from the accountant.

At TaxAssist Accountants we have experience of claims for over $100,000 and can attest it’s a good program.

For more information, contact one of our accountants along the East Coast.

Last updated: 17th May 2017