With Malcolm Turnbull increasingly broadcasting his enthusiasm for an Australian ‘ideas boom’, the importance of research and development (R&D) on economic development has become progressively discussed in public discourse.
Nonetheless, numerous companies are unacquainted with the opportunities available to them in regards to tax benefits. To combat the cost of engaging in R&D activities and the development of technology, the government currently offers a generous R&D Tax Incentive. However, it is important to note that the deadline to register is drawing near.
Each year the registration deadline for the R&D Tax Incentive typically falls on April 30th. This is because the deadline for lodging an application for registration is ten months after the end of a company’s income year. Therefore, for companies with a standard income period of 1 July 2014 to 30 June 2015, the lodgement of their registration with AusIndustry is consequently due by 30 April 2016. This year, in contrast, companies are able to lodge on Monday 2 May 2016 due to April 30 falling on a Saturday. It is still recommended that companies prepare before the final deadline date though to safeguard against a late submission.
The R&D Tax Incentive is a frequently overlooked opportunity for smaller companies, with many SMEs mistakenly believing this is exclusively for large corporations or those engaging in ‘white coat research’. By capitalising on these prospects, companies can produce generous tax savings, including generating cash for their past and future investments or developments. Overall, it is great opportunity for Australian companies to invest in their own products or services and get up to 45% cash back on their investment when they lodge their next tax return (i.e. if their aggregated turnover is less than $20 mil per annum). Don’t miss out on generating cash benefits for your research investments this tax season.
Contact AusGrant today if you would like more information on how the R&D Tax Incentive works and if you qualify.
