TaxTrex
TaxTrex

Investing in R&D for an innovative future

There are many innovative business in Australia generating new knowledge in areas such as software, manufacturing, health, food, construction, agriculture, mining and many more. However, not all companies are aware that may be eligible for the R&D Tax Incentive claim.

R&D is recognised as a critical driver of innovation. Studies conducted worldwide have concluded that companies who undertake R&D projects and are innovative in their practices are generally more successful and more competitive in both national and global markets. However, being innovative involves overcoming technical risks to generate new knowledge.

The financial risk of investing in R&D and the uncertain return is a key deterrent for companies thinking about undertaking R&D activities. This is where the R&D Tax incentive comes in. The main agenda for the program is “Powering Idea’s”, as it’s objective is to encourage R&D related projects across Australia. Hence, developing Australia into a more innovative nation.

The financial difference a R&D Tax claim can make for businesses, specifically for small and start-up businesses, is significant. This is extremely important for companies who invest heavily in R&D as cash flow is extremely critical throughout all stages of the innovation cycle. 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 million – unless they are controlled by tax exempt entities
  • a 40% non-refundable tax offset for all other eligible entities.

R&D is an increasing global activity as competition to be the “most innovative nation” increases. Globally, over 40 other nations have R&D Tax Incentive programs. Conducting R&D development projects in Australia does not only make us a more innovative nation, but also enables the transfer of knowledge across sectors, creation of jobs and the sharing of knowledge and skills sets.

Need help preparing your claim?

82% of accountants think that preparing R&D claims without specialist help is too risky. TaxTrex allows you to prepare R&D claims with little or no risk.

TaxTrex includes the tools you need to manage and offer an R&D claim service in-house from initial assessment to the claim submission.