R&D Tax Concession and Offset

The R&D Tax Concession is an entitlement program jointly administered by AusIndustry and the ATO. Under the program, Australian companies spending more than $20,000 per year on the development of new or improved products and/or processes are entitled to claim their Research and Development costs at 125%.

To a company paying tax the R&D Tax Concession means a return of 7.5c for every dollar spent on R&D.

The R&D Tax Offset is an important, but not well known, feature of the Tax Concession program. Companies with less than $5 million in sales and not paying tax, or paying minimal tax, can qualify. These companies can receive 37.5c back for each dollar spent on R&D.

It is also important for companies doing R&D to register annually, as a three year history of R&D may qualify the company for a higher rate of 175%.

Commercial Ready Consulting services include:

• Development of R&D plans
• Completion of registration forms and other documentation to meet AusIndustry requirements
• Working with the company accountant to ensure eligibility and maximise claims.

For more detailed information on R&D Tax Concession and Tax Offset, click here.