Action to claim R&D

Companies that have turnovers over $20M can also participate in claiming R&D tax offset but on a different basis to that available to smaller companies.

The R&D Tax Offset for larger companies is calculated on a different basis: corporate tax rate plus an incremental premium – a percentage of the company’s eligible R&D expenditure as a proportion of the company’s total expenditure.

All eligible R&D expenditure up to 2% R&D intensity will receive a non-re-fundable R&D Tax Offset, equal to the company’s corporate tax rate +8.5% premium.

If eligible R&D expenditure is above 2% R&D intensity, those companies will receive a non-refundable R&D Tax Offset of the company’s corporate tax rate +16.5%.

If your company spent more than $20,000 on eligible R&D activities (irrespective of the number of projects undertaken) for the year ended 30 June 2023, you only have three (3) months to lodge the R&D Tax Incentive Application with AusIndustry for them to review the projects that have been undertaken, and to issue a notice to the ATO confirming that they have reviewed the R&D projects undertaken by your company. This means that the R&D Tax Offset can be claimed in your company’s taxation return.

If your company’s income is under $20M and your company has been trading at a loss, you can claim a refund of the amount of the R&D tax offset, provided your company’s tax losses exceed the tax offset amount.

If your company’s turnover is over $20M, the tax offset is utilised in the determination of your company’s income tax assessment.

There is a fair amount of documentation required to support and to be included in the R&D Tax Incentive Application.

Towers Business Development can assist with the implementation of the R&D system for your company. To find out more, contact us on 1800 232 088 or email .