by Granton

Is your business innovating?

If yes, you may be eligible to claim the Research & Development Tax Incentive (R&DTI). The R&DTI is a program facilitated by the Federal Government to encourage Australian businesses to invest in innovation. Eligible companies can claim a tax offset of up to 43.5% of eligible expenditure (or 43.5c of every $1.00 spent). This means you can either get cash back or benefit from a tax saving.

How do I know if my business could claim the R&DTI?

The R&DTI is not industry specific and is open to any company undertaking experiments to develop a new product. There are three eligibility criteria:

1. be an Australian company
2. be undertaking eligible R&D activities, and
3. have at least $20,000 in eligible R&D expenditure.

What expenses can be claimed in the R&DTI program?

Expenditure attributable to eligible R&D activities can be included in a claim. Commonly claimed expenses include:

• R&D staff salaries & wages
• R&D contractor fees
• R&D business overheads such as rent, administration costs, R&D utilities
• software development
• formulation development
• product testing, and
• the cost of materials.
• etc

What are eligible R&D activities?