R&D Tax Concession (applies until 30 June 2011)
The R&D Tax Concession scheme provides a 125% deduction for expenditure incurred on eligible R&D activities prior to 1 July 2011. This translates to an additional benefit of 7.5 cents in the dollar for eligible expenditure.
Included within the R&D Tax Concession scheme is the 175% Premium or “incremental” tax concession. When a company increases its R&D expenditure above the average of its preceding three years, the increase or “increment” may be deducted at 175%, with the balance still at 125%. This translates to an additional benefit of 22.5 cents in the dollar for the incremental R&D expenditure.
Also included within the R&D Tax Concession scheme is the R&D Tax Offset, which is only accessible to companies with an annual group turnover of under $5 million and annual group R&D expenditure of under $1 million. This allows small companies to access a cash rebate equivalent to the R&D Tax Concession deduction (including the 175% Premium Concession). As such, a cash rebate of between 37.5 and 52.5 cents in the dollar may be available.
How Can We Help
Clark & Jacobs provides consulting services ranging from general advice on the Research and Development (R&D) Tax Concession, through to full preparation and lodgement of applications and their underlying assessment and documentation.
Our services include “hands-on” assistance, or simply advice, in relation to:
- R&D project identification
- R&D strategy and management
- R&D plans
- R&D application, documentation and lodgement
- R&D cost identification and tracking
- Liaison with the ATO and AusIndustry
- Audit assistance
If you are uncertain about whether or not your activities and expenditure will qualify for the R&D Tax Concession, the R&D Tax Offset, or the 175% Premium Concession, we would welcome the opportunity to discuss your circumstances with you.