What is R&D Tax Incentive?

The Research & Development (R&D) Tax Incentive is a government incentive program that helps businesses offset some of the costs of doing R&D. At Charts Partners, we have assisted many businesses with their R&D tax incentives particularly in manufacturing, IT and Agribusiness sectors.

The program aims to help more businesses do R&D and innovate by providing tax offset based on their turnover. The Government has announced an amended package of the Research and Development Tax Incentive (R&DTI) reforms in the 2020–21 Budget that will now apply from the first income year commencing on or after 1 July 2021. The proposed changes increases the R&D expenditure threshold from $100 million to $150 million per annum.

  • For companies with an aggregated turnover below $20 million, the refundable R&D tax offset will be a premium of 18.5 percentage points above the claimant's company tax rate.
  • For companies with an aggregated turnover of $20 million or more, the Government will introduce a two-tiered premium that ties the rates of the non-refundable R&D tax offset to the incremental intensity of the R&D expenditure as a proportion of total expenditure for the year. The new rates will be the claimant's company tax rate plus:
    • 8.5 percentage points for R&D expenditure up to 2 per cent R&D intensity
    • 16.5 percentage points for R&D expenditure above 2 per cent R&D intensity

Are you eligible?

We partner with you throughout the process of the R&D claim by providing the following services:

  • Identifying R&D tax activities.
  • Assessing the eligibility for the R&D Tax Incentive.
  • Calculating R&D expenditure and performing a cost benefit analysis of the R&D claim.
  • Preparing an application to register R&D activities with AusIndustry and lodgment of necessary R&D schedules with the entity’s income tax return.
  • Assisting management in setting up system and processes to ensure adequate R&D documentation is retained.
  • Assisting with preparation of documentation for substantiation requirements.

Please contact the team at Charts for a risk-free assessment of the eligibility for your innovative projects.