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Resources & FAQ

Resources

Stay tuned for information and articles relevant to tax, grants, and running a successful business, such as “top 5 things you need to know about R&D”.

 

What is R&D?

Core R&D activities are experimental activities, such as:

  1. Those with outcomes cannot be known or determined in advance on the basis of current knowledge, information or experience but can only be determined by applying a systematic progression of work that: is based on principles of established science; and proceeds from hypothesis to experiment, observation and evaluation, and leads to logical conclusions; and b. 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).
  2. Many companies conduct Research and Development through a deliberate and planned programme and process. However, many companies also conduct R&D without realising they may qualify for the Australian Government’s Tax Incentive. If you’re improving your products, services, materials, processes or services, you may qualify for the government’s R&D Tax Incentive.

 

Am I eligible?

To be eligible to claim for the R&D tax incentive, you’re a company must be:

  • Incorporated under Australian law or
  • Incorporated under foreign law but an Australian resident for income purposes or
  • Incorporated under foreign law and:
    • A resident of a country with which Australia has a double tax agreement, including a definition of 'permanent establishment'
    • Carrying on business in Australia through a permanent establishment as defined in the double tax agreement.
two businessmen planning R&D grant proposal

You’re not able to apply under these circumstances:

  • As an individual
  • As a corporate limited partnership
  • As an exempt entity (where your entire income is exempt from income tax).

Trusts are not generally eligible R&D entities.

 

What can I claim?

You can claim core and supporting costs related to Research & Development activities. This could include the costs rental, software, licences, and market research.

Arrange a free meeting with us and we can advise you on the range of costs that could qualify as an R&D cost to claim.

How much can I get back?

From 1 July 2016, companies with a turnover of under $20 million can claim a 43.5% refundable tax offset of their R&D expenditure. All other eligible companies can claim a non-refundable 38.5% tax offset.

What do I need to do?

Contact us for a free meeting so we can help you untangle the R&D spaghetti and maximise your claim.

  • 0413 815 108
  • rseeto@zeikin.com.au