Over the past year there have been a number of bills introduced into federal parliament to change the R&D tax incentive. Here is a quick update, as at September 2015.
Changes to the R&D tax incentive – annual $100m R&D spend cap introduced
On the 9 February, the Senate passed two amendments with the following effect:
1. A $100 million R&D annual spending cap
2. Start date of the changes to be income years commencing on or after 1 July 2014.
No change in R&D Tax Incentive rates
In the 2015-16 budget released on 12 May 2015, the Australian government reiterated its intention to reduce the rates of assistance under the R&D tax incentive by 1.5%. The proposed new rates are 43.5% (for entities with a turnover under $20 million) and 38.5% for all other eligible entities. The bill [TW1] also has a retrospective starting date of 1 July 2014. The Senate has already rejected the proposed cut to the offset and has not considered the re-tabled proposal.
Registration Deadlines
Registration is a critical first step in accessing the R&D tax incentive. Companies must register their R&D activities with AusIndustry before they are able to claim the benefits of the R&D tax incentive.
The deadline for lodging an application for registration is ten months after the end of a company’s income year. For example, this means entities with a:
- Standard income period of 1 July 2014 to 30 June 2015 must lodge its registration application with AusIndustry by 30 April 2016 and
- Non-standard income period of 1 January 2014 to 31 December 2014, must lodge its registration application with AusIndustry by 31 October 2015.
Recent Comments