Can Your Business Claim the R&D Tax Incentive in Australia?
Does your business build new technology in Australia? If so, the R&D tax incentive could put real cash back in your pocket. The government created this program to lower the cost of innovation, and more than 13,000 businesses already use it. Let's break it down step by step. How the R&D Tax Incentive Works Most small businesses with turnover under $20 million receive a tax offset of 43.5%. This offset cuts your tax bill dollar for dollar. Even better, the offset can be refundable, so the ATO pays you the difference in cash when the offset beats your tax bill. For example, a hardware startup with $85,000 of eligible R&D spend can receive a $36,975 refund. Does Your Work Qualify? Ask R&D Tax Consultants First, you need a core R&D activity. This is an experiment where nobody can know the outcome in advance. Also, you must run it to create new knowledge. Next, check these basic rules: Spend more than $20,000 on R&D in one financial year. Run the R&D for your...