Tuesday, May 08, 2018

Business as usual for SMEs looking to invest in r and d and claim the r&d tax incentive

  • So what is this R and D incentive 

it is basically a cash rebate to incentivise you for developing innovative products and services. 

It provides a rebate of between 13.5% to 41.5%

So if you spend $100,000 on developing a new product or service or innovating,
you could get back between $13,500 and $43,500 depending on your Companys' profitability.
(limited to $4m per year) 

  • Are you Eligible 

If you are 

  • an Australian Company
  • Undertake R&D Activities in Australia 
  • Spend Over $20k 


ps ... if you are 3 years old and your turnover is greated than $1.5m there are a whole host of other grants you can claim 

  • SME's don't claim for a whole host of reasons


  • They dont have adequate systems to record R&D activities
  • They do not know what R&D actually is (the legislation is very murky and difficult to interpret - even by the experts 
  • They don't know what they don't know 

Some research indicates that at least 50% of SMES undertake R&D activities and could potentially claim this incentive - but only 1% do!

  • The Risk

Funds from the budget have been allocated to crackdown on non-compliance and rorting , so you need to ensure you have your ts crossed and is dotted 

Budget 2018 Changes 

  • Changes to percentages to be claimed with companies whose turnover is greater than 20m - giving more to those who spend more on r and d as a percentage of revenue .
  • Caps on spend 
  • Those that claim - names and amounts will be published 
  • Bigger budget to be spent on compliance - so ensure you have your claim verified and auditable! 

Let me know if you want a referral to the best r and d consultants in the country! 

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