TaxTrex
TaxTrex

R&D Tax Incentive – is your business missing out?

The financial risk of conducting R&D has long been a key deterrent for companies considering undertaking R&D activities. However, this is only a deterrent to companies who are not leveraging the R&D Tax Incentive. The purpose of the incentive is to encourage Australian businesses to conduct R&D activities in order to boost productivity and create an innovative nation.

Eligible businesses from all industries across Australia are missing out on the benefits of the R&D Tax Incentive. R&D does not only involve activities that are scientific or revolutionary, but any activity that generates new knowledge. In fact, it’s often small to medium private businesses that continue to advance their current services or create new solutions or incorporate new technologies into existing products to stay competitive.

Core activities are defined by AusIndustry as activities that:

  • is based on principles of established science; and
  • proceeds from hypothesis to experiment, observation and evaluation, and leads to logical conclusions; and

that are conducted for the purpose of generating new knowledge (including new knowledge in the form of new or improved materials, products, devices, processes or services).

Another misconception is that businesses think they need to be profitable to claim the incentive. However, the incentive also provides a 45% cash refund for companies in tax loss. Many companies that are struggling due to economic downturn and are looking for new opportunities may find that the activities they are conducting are eligible for the incentive.

Need help with you claim?

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.