Claim Your Research and Development Tax Credits
The Research and Development Tax Incentive (R&D Tax Incentive or R&DTI) encourages research and development (R&D) activities that generate knowledge for the benefit of the Australian economy. The Department of Industry, Science, Energy and Resources (the department), on behalf of Industry Innovation and Science Australia (IISA), administers the R&D Tax Incentive with the Australian Taxation Office (ATO).
Who Qualifies for R&D Tax Credits?
- 43.5% refundable tax offset is available to companies with an annual turnover of less than $20 million.
- 38.5% non-refundable tax offset is available to companies with an annual turnover is more than $20 million.
How Do You Apply?
You need to apply to register with us before you can claim for expenditure on your eligible R&D through the ATO. You need to apply to register within 10 months of the end of the income year in which you conduct your eligible R&D activities. ATO will issue you with a registration number. You will need to enter this number in the R&D schedule in your annual income tax return.
Self - Assessment
Under the R&DTI, you first need to assess whether you are eligible to register as an R&D entity. Next you assess if your R&D
activities are eligible. Further, you assess whether the associated expenditure on your R&D activities in an income year is
eligible. ATO expect you to keep evidence to support your claim.
The questions in this section will help you assess whether you are eligible to register and claim for the R&DTI.