Australian Research & Development Tax Incentive

Camphin Boston | February 2020

This is once again the time of the year when companies are preparing their Research and Development (“R&D”) applications for lodgement with AusIndustry to register their R&D activities by the due date of 30 April 2020 for the year ended 30 June 2019.

The R&D Tax Incentive program provides an eligible company to claim either of the following for certain R&D expenditure incurred on registered R&D activities:

  • A 38.5% non-refundable tax offset (equivalent to 128.33% tax deduction) if the company’s aggregated turnover is $20 million or more; or
  • A 43.5% refundable tax offset (equivalent to 145% tax deduction) if less than $20 million.

Generally, eligible R&D activities are experimental activities whose “outcome cannot be known or determined in advance” based on current knowledge, information or experience and are “conducted for the purpose of generating new knowledge” (including new or improved products, processes or services).  

As the due date of 30 April 2020 is a hard deadline which cannot be extended, if you are not sure whether you are eligible or not, or would like our assistance in preparing your 2019 R&D application, please do not hesitate to contact one of our Partners (Mark, Greg or Justin) or Tax Director (Melanie) on +61 2 9221 7022 or at   

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