TaxTrex
TaxTrex

R&D driving innovation to drive productivity

There have been calls from within the government for a tax system that encourages a “more entrepreneurial, risk-bearing culture”. Tax incentives have long been used by governments to motivate such behaviours using generous deductions and rebates applied to research and development (R&D) expenditure and tax offsets for startup investors.

Innovation

The R&D Tax Incentive encourages smaller incubators to engage in R&D. Thousands of early stage Australian startups focus on managing cash flow and accessing capital each year. Many entrepreneurs look to government programs to aid this. This is where the R&D Tax incentive becomes valuable as it not only helps startups with their cash flow requirements, but is one of many reasons why Australian startups keep their companies onshore instead of moving to more favourable economic conditions overseas.

In turn, this incentive is stimulating R&D activities undertaken in Australia, which results in enhancing Australia’s innovative output, driving the economy to be more productive. The prosperity of any economy depends on its productivity. Innovation plays a crucial role in long-run productivity improvement to sustain economic growth that ultimately determines a nation’s standard of living. Therefore, given the importance of enhancing productivity through innovation, it is important that innovation is backed and supported by government policy.

Recently, biotech giant Cochlear warned that cuts to the R&D Tax Incentive will have a negative effect on the Australian economy. Cochlear believes with the help of the R&D tax Incentive the company is able to increase overall growth, hence, exporting more, creating new jobs and keeping R&D activities within Australia.

Are you claiming your R&D?

82% of accountants think that preparing R&D claims without specialist help is too risky. TaxTrex has been designed to cut through the complexity and take the pain out of claim process.

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