R&D (Research and Development) Tax Incentives

The R&D tax incentive lowers the cost and risk of investing in research and development activities for your business. In fact, the R&D incentive is very competitive in comparison to those in other OECD countries. With Accounting Industries, you can make the most of this financial program and fuel innovation-led growth.

The R&D tax incentive offers a tax offset for some of the costs you expend for eligible R&D activities by reducing your income tax liability. If your annual turnover is less than $20 million, you’re eligible for a tax offset of 43.5%. That basically means that you can get a refundable deduction of 43.5% for business expenses rather than the regular 27.5%.

If your annual turnover exceeds $20 million, you get a tax offset of 38.5%. Loss-making companies may choose to carry forward their offset and use them in the years that they turn a profit.