RESEARCH AND DEVELOPMENT TAX INCENTIVE (R&D Tax Incentive)
R&D Tax Incentive is to encourage business invest in eligible R&D activities.
Tax Offset Benefits for eligible R&D conducted from 1 July 2021 is based on a premium on top of corporate tax rate.
For R&D entities with aggregated turnover of less than $20 million:
Corporate tax rate plus an 18.5% premium refundable R&D tax offset is available.
For R&D entities with aggregated turnover of $20 million or more:
Corporate tax rate plus an incremental premium non-refundable R&D tax offset is available. The premium increments are based on your R&D Intensity. This is a percentage of your eligible R&D expenditure as proportion of your total expenditure for the year.
| Intensity of R&D Expense | Non-Refundable R&D Tax Offset |
| Less than 2% | Corporate tax rate plus 8.5% premium |
| 2% or more | Corporate tax rate plus 16.5% premium |
If the eligible expenditure exceeds $150 million for an income year, the tax offset is calculated using your company tax rate.