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.
For claims made in relation to the 2021 income year:
- Annual turnover of less than $20M can receive a 43.5% refundable tax offset.
- Annual turnover of $20M or more can receive a 38.5% non-refundable tax offset.
For claims made in relation to the 2022 income year and beyond:
- Annual turnover of less than $20M can receive a refundable tax offset of 18.5% above the company’s prevailing tax rate.
- Annual turnover of $20M or more whose R&D expenditure represents 2% or less of their overall company expenditure can receive a non-refundable tax offset of 8.5% above the company’s prevailing company tax rate.
- Annual turnover of $20M or more whose R&D expenditure represents more than 2% of their overall company expenditure can receive a non-refundable tax offset of 16.5% above the company’s prevailing company tax rate.
This incentive can be claimed annually and is dually administered by AusIndustry and The Australian Taxation Office (ATO).
The Export Market Development Grant (EMDG) is a grant scheme that assists businesses in exporting their Australian product, good or service to the overseas market.
The grant offers businesses a 50% reimbursement on all eligible export market related expenses and covers costs like overseas travel, marketing consultants, promotional literature, attending trade fairs and seminars and IP protection.
This grant can be claimed annually (for a maximum of 8 years) and is administered by the Australian Trade and Investment Commission (Austrade).
The Accelerating Commercialisation Grant provides a cash grant to businesses who are looking to commercialise their novel product, process or service.
This competitive grant offers matched funding of up to $1M for eligible projects that take between 12-24 months.
The grant can be claimed on a per project basis and is administered by AusIndustry as part of their Entrepreneurs Programme.