The R&D Tax Incentive provides a tax free cash refund up to 43.5% of eligible R&D spend to companies annually.
If you spent just a $100,000 on eligible activities you could receive $43,500 cash, tax free!
Most companies conducting R&D spend between 2.5% and 5% of turnover on R&D.
In 2017/18 over 15,000 Australian companies claimed over $3.2 Billion from the R&D Tax Incentive.
Sadly a majority of businesses conducting R&D do not claim the incentive.
Some do not understand they are doing R&D. So what is R&D?
Modern R&D is not lab coats and test tubes.
Modern R&D is about solving problems, dispelling the unknown, testing new ideas and concepts.
It’s about making things smarter, different, lighter, smaller, faster and / or better.
Think about every problem you have experienced in your business last year and ask, “WHY?”
- Was it the result of a problem caused by old methods and technology?
- Was there trial and error in resolving the issues?
- Were there technical obstacles you had to address?
- Did you have to find a way to overcome the problem which was not immediately apparent?
- Did you aim to improve efficiencies, reduce waste or rejects, or reduce inputs?
If you answered yes to any of these then please complete the free eligibility test.
Eligible costs include direct materials and salaries together with a share of overheads like rent, electricity, depreciation, consultants, travel, workers compensation, insurance, internet, book keeping, and administration.
As a guide to the size of your claim consider your eligible R&D salaries and double them.
Developing software could also be eligible.
If you have any doubts about your eligibility – call DIY Grants Online on 1800 GRANTS.