The Research and Development (R&D) Tax Incentive is a vital programme offered by the Australian Government to encourage investment in innovation and generate knowledge for the benefit of the Australian economy.
For companies with financial years ending 30 June 2024, the deadline to register R&D activities is fast approaching on 30 April 2025. It is essential to act now to maximise your benefits and remain compliant.
What is the R&D Tax Incentive?
This programme provides generous tax offsets for eligible companies conducting R&D activities, including:
- Refundable offsets of up to 43.5% for entities with less than $20 million global aggregated turnover.
- Non-refundable tax offsets ranging between 8.5% and 16.5% for entities exceeding $20 million global aggregated turnover.
These offsets can significantly enhance cash flow, enabling businesses to reinvest in their innovation efforts.
Key Eligibility Criteria
To qualify, you must be a registered Australian company with at least $20,000 in R&D expenditure. Further, your R&D activities must meet the following criteria:
- Involve the development of a new or improved product, process or service.
- Have a technical challenge that cannot be solved using available information or experience.
- Require systematic experimentation to resolve technical unknowns and challenges.
Navigating the Application Process
The registration process requires an R&D Application to be lodged with AusIndustry within 10 months of the end of the financial year, followed by inclusion of the R&D schedule in the company’s tax return.
Given the complexity of this process, guidance is recommended to ensure compliance and maximise the benefits of any potential claims.
Why Partner with Moore Australia?
At Moore Australia, we specialise in assisting businesses to unlock the full potential of the R&D Tax Incentive. With a proven track record, our team has successfully:
- Secured substantial cash refunds for innovative firms across industries.
- Navigated AusIndustry audits and requests for further information to confirm eligibility.
- Supported clients in obtaining overseas and advanced findings for long-term benefits.
Get in Touch
If you are developing innovative solutions, your business may be eligible for the R&D Tax Incentive. Contact us to review your activities and ensure your claim is lodged before the 30 April 2025 deadline.
If you have any questions, please reach out to our R&D Tax Incentive team or tailored advice and support.