THE RDTI
About the RDTI
The R&D Tax Incentive Conversation: How it works and what we can do for your company
About the RDTI
Research and development tax incentive
The Research and Development (R&D) Tax Incentive (RDTI) encourages companies to engage in R&D by providing a tax offset for eligible R&D activities.
Entities engaged in R&D may be eligible for:
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a 43.5% refundable tax offset for eligible entities with an aggregated turnover of less than $20 million per annum, provided they are not controlled by income tax exempt entities
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a 38.5% non-refundable tax offset for all other eligible entities (entities may be able to carry forward unused offset amounts to future income years).
legislation.gov.au
Income Tax Assessment Act 1997
How does the RDTI work?
The Federal Government provides tax offsets as a proportion of your R&D expenses. At the end of the year you and your tax advisor can simply take your R&D plan and documentation and transfer that to the RDTI application and your tax return. Once your tax return has been assessed then (provided you turn over less than $20M p.a.) you will receive cash from the government equal to 43.5% of what you spent on R&D during the year.
Who can claim the RDTI?
Anyone who is conducting R&D can claim the RDTI. The RDTI is currently claimed by thousands of companies across Australia across all sizes and stages of development.