If you are undertaking experimental activities to develop new product or service offerings, you may be eligible to claim Research & Development tax or R&DTI incentive from the government.
The R&DTI encourages companies to engage in R&D benefiting Australia, by providing a tax offset for eligible R&D activities.
For most companies, the R&DTI provides a tax rebate of up to 43.5% of eligible R&D expenditure.
For example, if you spend $100,000 on developing a new product or service and are eligible to claim, you could get back up to $43,500 from ATO.
The eligibility to claim R&DTI will depend on whether:
To be eligible, you must conduct, or plan to conduct, at least one eligible core R&D activity to register for the R&DTI.
Core R&D activities are such experimental activities:
You must register with the Department of Industry, Innovation, and Science before you lodge your claim.
For the income year ending on 30 June 2022, the deadline to submit your R&DTI application is 30 April 2023.
Get in touch with us today, if you would like to know more about R&DTI or determine your eligibility to apply for the R&DTI.
Disclaimer: This article is provided as general information only and does not consider your specific situation, objectives, or needs. It does not represent accounting or tax advice upon which any person may act. Implementation and suitability require a detailed analysis of your specific circumstances. Before taking any action, consider your own circumstances and seek professional advice.