What is a Research & Development Tax Concession? The Research and Development (R&D) tax concession is a joint initiative of the Australian Taxation Office (ATO) and AusIndustry. It is an ongoing scheme designed to increase the level of R&D being conducted by Australian companies. The concession is broad-based, non-industry specific and market-driven with the applicant entity deciding upon the scope and timing of the R&D. The R&D tax concession enables companies to deduct up to 125% of eligible expenditure incurred on R&D activities from assessable income when lodging their income tax returns.
For those companies that continue to increase their level of R&D expenditure from year to year (excluding plant related expenditure), the expenditure may also be eligible for an additional 50% deduction called the ‘175% premium R&D tax concession’ after 3 years.
Furthermore, a ‘R&D tax offset’ (a cash rebate equivalent to the value of the R&D tax concession) is available to companies with an annual turnover of less than $5 million and whose aggregate R&D amount is more than $20,000 and less than $1 million per year. Eligible companies can elect to receive the cash instead of the tax deduction of 30 cents for each dollar that would otherwise have been claimable.
How has RADBE helped other clients? Radbe Consulting has worked with numerous clients to assess the R&D tax concessions and has a well developed methodology to assist clients at all stages of the claim process. In the 2007 Financial year, Radbe helped their clients receive over $7 million through this scheme alone.
MultiTrode has been a successful recipient of research and development grants over the years because of the contribution Radbe Consulting have made to our applications. Not only have Radbe Consulting been our valued partners in obtaining grant funds, they also apply their expert knowledge in actively managing the relationship with AusIndustry. We continue to work closely with Radbe Consulting and highly recommend them to others.
Wayne Patterson, CEO MultiTrode
Useful Links: www.ato.gov.au www.ausindustry.gov.au
> Register Interest