R&D Tax Incentive

Providing financial benefits to companies investing in the development of new improved products, processes, services, materials or devices

R&D Tax Incentive

The nuts and bolts of the program

The R&D Tax Incentive (RDTI) is the Federal Government’s flagship Innovation program. Each and every year, it supports in excess of 16,000 companies of all shapes and sizes from all kinds of industry sectors.

There are two program streams:

1. A 38.5% non-refundable R&D tax offset for companies with aggregated turnovers in excess of $20M and;

2. A 43.5% refundable R&D tax offset for companies with aggregated turnovers under $20M.

The spectrum of activity that can attract entitlements is broad encompassing as it does ‘’experimental activity’’ undertaken to develop new or improved products, processes, services, devices and/ or materials.

The need to identify an ‘’experiment’’ should not be taken as meaning that there has to be a white coat and a test tube bubbling away in the background somewhere. The experimental activity might well be conducted in a laboratory but activities of this kind that are taking place in a factory, mining, farming, construction and/ or IT/ start-up environment can just as legitimately be claimed if the propositions are reasonably arguable.

How can NOAH help?

We specialise in RDTI claims and have been helping companies to access benefits under the program for over 15 years. We know what’s likely to pass muster and what’s going to be more questionable and we’re expert at articulating the reasonably arguable cases upon which every claim depends. Under our full compliance service, we can also take responsibility for the calculation of the R&D expenditures in a manner that is transparent and fully auditable.

What’s more, we understand how the compliance environment has changed and what the Regulators now expect in terms of the evidence that should be maintained to substantiate claims. The expectations in this regard have grown as the RDTI program has matured and so registrants need to keep abreast of the changes to minimize their exposure in the event of a review.

If you’re not claiming and think you might be eligible – or even if you just want an increased level of comfort that you are maximizing your entitlement and meeting compliance requirements – please contact us to arrange a no-obligation, free consultation.