Innovation journey normally starts with research

Whilst innovation normally starts with research, unfortunately, some people miss out on being able to claim the research and development (R&D) tax offset, because they are not operating as a company or they are unaware of the record-keeping requirements to be able to claim the R&D tax offset.

If the company is spending more than $20,000 in the financial year on legitimate R&D expenditure, and all of the records pertaining to that research expenditure have been maintained, the company is able to claim 43.5% of that R&D expenditure as the R&D tax offset.

If the company is trading at a loss, the company is able to make an election in its income tax return; that the cash equivalent of the R&D tax offset is paid by the tax office to the company’s nominated bank account, subject to the company’s tax losses exceeding the calculated R&D tax offset amount.

To start the “Innovation Journey”, directors are urged to obtain advice on R&D.

Contact Towers Business Development on 1800 232 088 or to find out more about the innovation journey.