The Research and Development (R&D) Tax Incentive provides businesses with a tax offset for eligible activities that relate to the research and development of novel products or processes.
The value of the tax offset depends on the annual turnover of the business applying for the incentive:
- Annual turnover of less than $20M can receive a refundable tax offset equal to their tax rate plus 18.5%.
- Annual turnover of $20M or more can receive a non-refundable tax offset equal to their tax rate plus either 8.5% or 16.5%.
This incentive can be claimed annually and is dually administered by AusIndustry and The Australian Taxation Office (ATO).