The adequately deemed ‘silly season’ has officially come to a close, marking the start of a new year, new resolutions, new ideas, and new ways. Although these are often concerned with a new fitness regime, new language or the phasing out a bad habit in our personal lives – our corporate goals shouldn’t be left off the resolutions agenda either.
Whether you believe in resolutions or not, making a list of action can help you achieve your goals in 2016. Certainly, the New Year means new opportunities—for networking, meeting clients, expansion, and growth. It is a great time of year to evaluate the old, and consider the new. For instance, the inclusion of ‘innovation’ in a company’s goals for 2016 is a great place to start. Due to Turnbull’s Innovation Statement being released last month, there is no denying the fact that the term ‘innovation’ has become politically fashionable. However, how can companies translate this buzzword into a reality for their company?
One perceptible way of growing innovation in your company is by increasing research and development (R&D) activities. Besides supporting the creation of new products, processes, and software, R&D can increase profits and knowledge for a company. Consequently increasing cash flow and improving productivity. Moreover, companies can benefit further by utilising the governments R&D Tax Incentive.
The research and development (R&D) incentive is intended to boost innovation in firms and improve business processes – and can also provide companies with generous tax benefits. Although, there is a common misunderstanding that the R&D tax incentive only relates to technology or research focused companies, such as the enormous pharmaceuticals companies. Nonetheless, any business which is innovative or undertaking eligible activities may qualify. The R&D Tax Incentive is one of the most effective methods of support for research in Australia and provides companies with up to 43.5 cents back for every eligible dollar – even in cases where small or young firms aren’t yet paying tax.
Hence, in 2016, companies wishing to refresh, reinvent and re-energise their companies should highly consider investing in innovation. As mentioned above, R&D activities are one great way of driving innovation. Posing the question, what new opportunities could R&D create for you this year?
AusGrant is one of Australia’s leading grant consultancy services, providing specialist services relating to grant submissions and R&D tax agent services.
