Research and Development Tax Incentive

The Research and development (R&D) tax incentive encourages companies to engage in R&D benefiting Australia, by providing a tax offset for eligible R&D activities. It has two core components:

o    a refundable tax offset for certain eligible entities whose aggregated turnover is less than $20 million

o    a non-refundable tax offset for all other eligible entities.

The R&D tax incentive replaced the R&D tax concession from 1 July 2011, and applies differently from the concession.

R&D claims for income years starting before 1 July 2011 may be eligible for the R&D tax concession.

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Information sourced from the Australian Taxation Office (ATO).

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