If your company is thinking of undertaking research and development to create new or improved products, processes and services, you may be eligible for the Australian Government’s Research and Development (R&D) Tax Incentive. The government offers tax offsets to companies engaged in innovative activities to help them reduce the cost and risk of undertaking R&D in their business.

If your business is eligible, VC Group can help you with insights into the process.

Does your business qualify for the R&D tax incentive?

Before you apply for the R&D tax incentive you need to consider if your business fulfils the government’s eligibility criteria for business structure and expenditure. Your eligibility also depends on where you carried out your R&D activities and the type of activities.

To qualify, your company needs to be:

  • Incorporated under an Australian law
  • Incorporated under a foreign law, but you are an Australian resident for tax purposes
  • Incorporated under a foreign law and you are a resident of a country with which Australia has a double tax agreement and the company carries on business through a permanent establishment of the body corporate in Australia

Partnerships or trusts are not eligible although a public trading trust with a corporate trustee may qualify.

Companies are also required to have spent at least $20,000 on eligible expenditure in a financial year.

Contact VC Group to discuss whether your company is eligible for the R&D incentive and for a list of eligible expenditures.