A proposal to change the R&D tax incentive from July 1 2018 was proposed in the recent Federal Budget.
The changes are as follows:
- For companies under $20M
If you are a base rate entity with a tax rate of 27.5%, the refundable tax offset will change from the 43.5% to 41%. If the tax rate remains at 30%, there will be no changes. However, a maximum cash refund of $4M each year will apply.
- For companies over $20M
The basis of the R&D intensity percentage is from the amount of R&D related expenditure as percentage of total company expenditure. For the percentage offset difference, its basis will be on whether one is a base rate entity.
For further information on how these changes affect your R&D tax incentive claim, feel free to reach us at (08) 9316-4500, or you can also chat with us via the website’s LIVE CHAT feature. Thank you!
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