A spoken YouTube briefing (Mark Marcou) explaining Australia’s Research and Development Tax Incentive (R&DTI). It describes the R&DTI’s purpose—encouraging firms to invest in R&D—eligibility rules (incorporated companies, core R&D activities, >$20,000 expenditure or engagement of registered research service provider), self‑assessment requirement, and offset rate rules that took effect 1 July 2021 (different refundable/non‑refundable structures based on aggregated turnover and R&D intensity).
Chapters
Research and Development or R and D benefits business communities and the broader Australian economy. R and D creates new knowledge, technology and processes and is important for helping companies to grow and succeed. Companies take pride in their R and D the Research and Development Tax Incentive or or RNDTI is a way for the Australian Government to encourage companies to do RD by providing a tax offset to conduct R and D that they might not otherwise conduct due to risk or uncertain returns. The R&DTI is an incentive program that supports your company to invest more in eligible R and D activities. For R and D conducted from 1 July 2021, the R&DTI offers different tax offset rates depending on your company's aggregated turnover. In if your company's annual aggregated turnover is less than $20 million, the refundable offset rate is equal to your company tax rate plus a premium of 18.5%. If your company's annual aggregated turnover is $20 million or more, you may receive a non refundable offset rate equal to your company tax rate plus a premium. The premium has two tiers and is dependent on the incremental intensity of your R and D expenditure. Incremental intensity is measured by your RD expenditure as a proportion of your total expenditure for the year. For R and D expenditure up to 2% of your total expenditure for the year, you will receive a premium rate of 8.5%. For an additional R&D expenditure above 2% of your total expenditure for the year, you will receive a premium rate of 16.5%. The RNDTI is more than a financial support program. Registered research service providers provide an opportunity to collaborate with research partners. The types of R and D that are eligible are set out in the laws that underpin the program. If your R and D activities meet the program criteria, you can claim the tax offset. The R and DTI is a self assessment program. This means you must determine if your R and D activities are eligible according to the legislation before you apply to register for the program. You can even check if your RD activities are eligible before you conduct or plan to conduct your R and D activities. Eligible R and D activities are activities where the outcome of the R and D can't have been known or determined in advance. Eligible R and D activities are also carried out in a scientific way with the aim of generating new knowledge. We expect you to keep records to show that your R and D activities meet the legal requirements of the program. You should consider registering for the R&DTI. You're an incorporated company. You conduct or plan to conduct at least one activity that meets the program definition of a core R and D activity. You have eligible R and D expenditure greater than $20,000 or have engaged a registered research service provider to do your R and D. For more information on eligibility and how to apply, visit our website or call the Department of Industry, Science, Energy and Resour.
