Entities engaged in Research & Development activities may be eligible for:

       45% tax credit; effectively a 150% tax deduction for entities under $20m turnover

       38.5% non refundable tax offset; effectively a 133% tax deduction

These incentives can greatly reduce your tax payable or lead to a tax refund.

The Government wants to encourage innovation and this often starts with R&D activities, which may not provide the benefits businesses hope for and are therefore reluctant to commit to spend $$ on. The tax incentives make the risk a little more palatable for a business to undertake.

To qualify for the incentives the R&D, activities need to show:

       Technical uncertainty or risk

       Outcome of the activities cannot be determined in advance

       If the knowledge exists and is not accessible to the company then the company may still qualify

The Government has many grants and incentive programs in addition to R&D that may be of assistance to your business and if you would like to know more please contact me.

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