- 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.
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
YOU COULD BE ELIGIBLE
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
INCLUDING- 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!
