In general terms, the Research and Development Tax Incentive means that Australian Government offers a 45% benefit to research and development expenses incurred by Australian companies making less than $20 million. The benefit comes in the form of a tax deduction, or cash payment if running at a loss. This is huge!
There are rules and regulations governing compliance of course, and if you’re interested then we recommend you learn more from the information provided at the Australian Taxation Office website here:
For any tax matters, you really should speak with a specialist, and we are happy to recommend one in Perth who specialises in applications for the tax incentive.
Speaking generally though, here are some observations we can share:
- You can only claim the benefit against the company that paid the R&D bill. This might seem obvious, but when you’re dealing with startups sometimes the company registration isn’t setup when you start a project, and this can be a problem if you’re invoiced and have made payment personally or via another company. Make certain you have your invoices issued (or reissued) against the company that will be making the R&D incentive claim.
- Not every app is innovative. Internal business tools aren’t always eligible either. A specialist accountant will help to assess your position, and phrase your application to highlight the innovative aspects if you are eligible.
- If you are eligible, then most likely any service we provide is 45% cheaper for you. Our rates are great to start with, so with this discount they are amazing!
Most people don’t know that this program exists. It is a truly incredible opportunity, and if you think it may apply to your company then we strongly urge you to learn more.
If you’d like to learn more about the tax incentive please call our Perth office on 1300 DAPPER from within Australia, or submit an online request for a meeting or consultation via our Contact page.