Proposed Changes to Research and Development Tax Incentive

-Proposed Changes to Research and Development Tax Incentive

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
     femia accountants- tax incentives

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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2018-08-23T02:21:41+00:00