R and D Tax Concession
The R and D Tax Concession is the flagship initiative offered by the Australian Government to encourage continued research and development involvement.
The scheme allows companies to reduce their tax liabilities by deducting a standard 125% of eligible expenditure from their assessable income.
Enhancements to the scheme enable companies to claim a 175% Premium (Incremental) and/or the R&D Tax Offset (Rebate) if they meet certain conditions.
Who is eligible?
Australian incorporated companies who bear the financial risk of the research; control and manage the Research and Development activities and own the results of the R&D.
“We have been using BBL Group for the R&D Tax Concessions for over 10 years. They have always provided prompt and efficient service. Sue has a unique ability to grasp technical concepts quickly and convert them into lay language. Her knowledge of the tax concession is detailed and thorough.”
Lyn George, Corporate Manager,
Australian Engineering Solutions Pty Ltd, t/a Austeng.
What is eligible research and development?
Systematic, investigative and experimental activities applied to goods and or processes involving innovation or high levels of technical risk. It is sometimes referred to as “product development”. What is innovation or technical risk?
- Innovation – activities must involve an appreciable amount of novelty.
Ask the question – how does my development differ from the current technology?
If the difference involves newness, uniqueness or an improvement, then it is likely to involve innovation. - Technical risk (high levels) – this refers to the uncertainty of the outcome of the project. In other words, it is not known if the desired results of the project can be achieved. To be eligible, the application of some scientific method is necessary to remove this uncertainty.
Follow our simple
"Sniff Test"
to quickly determine if you may be eligible for the R and D Tax Concession. (A new window will open to view and print the PDF document.) Contact us to discuss your company’s R&D projects. You may be eligible for the tax benefits associated with this scheme. We can also estimate the value of your tax benefit during an initial no-fee consultation. The R&D Tax Concession is administered jointly by the Industry Research and Development (IR&D) Board through AusIndustry and the Australian Tax Office (ATO).
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