Changes to R&D Tax Offset

Posted on Apr 30, 2012 | 0 comments

Does your company undertake R & D activities and is eligible to claim the R & D tax offset?

The research and development (R&D) tax incentive provides a targeted tax offset to encourage certain companies (R&D entities) to conduct R&D activities that benefit Australia.

It provides generous benefits for companies performing eligible R&D activities and has the following two core components:

  • a 45% refundable tax offset for eligible entities with an aggregated turnover of less than $20┬ámillion – unless they are controlled by tax exempt entities
  • a 40% non-refundable tax offset for all other eligible entities.

For eligible entities, aggregated turnover must be under $20m and notional deductions in most cases, must be at least $20,000.

It replaces the R&D tax concession from 1 July 2012 and is jointly administered by Innovation Australia (assisted by AusIndustry) and the ATO.

More information is available at


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