Rural Research and Development

Australia needs to be able to adapt and respond to new issues. Innovation is the key. It drives growth, sustainability and resilience.

Investment in research and development (R&D) and innovation is vital for ongoing growth and improvement in the productivity, profitability, competitiveness and sustainability of Australia’s agriculture, fisheries, forestry and food industries.

The Research and Development Tax Incentive (R&DTI) offers a tax offset for companies conducting eligible R&D activities. It encourages investment in R&D to help your company to grow and innovate which generates benefits for the Australian economy.

New tax offset benefits for eligible R&D conducted from 1 July 2021

The tax offset for eligible R&D conducted from 1 July 2021 is now based on a premium on top of your corporate tax rate. 

Turnover of less than $20 million

For R&D entities with aggregated turnover of less than $20 million, the refundable R&D tax offset is your corporate tax rate plus an 18.5% premium.

Turnover of $20 million or more

For R&D entities with aggregated turnover of $20 million or more, the non-refundable R&D tax offset is your corporate tax rate plus an incremental premium.

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.

1. All eligible R&D expenditure up to 2% R&D Intensity will receive a non-refundable R&D tax offset equal to your corporate tax rate plus 8.5% premium.
2. Additional eligible R&D expenditure above 2% R&D Intensity will receive a non-refundable R&D tax offset of your corporate tax rate plus 16.5% premium.

Understanding eligible R&D Activities

R&D projects are made up of a number of steps that you must take for a project to succeed. These steps are R&D activities. Each R&D activity will have of one or more actions that you must complete to achieve an activity outcome.

The program supports R&D activities that can be shown to follow a set of specific actions. These actions must meet the requirements set out in the definition of an eligible R&D activity.

How does it work

The R&DTI is a self-assessment program

Before you register for the R&DTI:

• You must self-assess whether your entity is eligible.
• You must self-assess if your R&D activities are eligible.
• You must self-assess that your R&D expenditure is eligible.
• You must keep records and evidence to support your registration and claim.

To help ensure your eligibility you should read the legislation. You should also review supporting information available here including the Guide to Interpretation.

Steps you need to follow

1. Self-assess your eligibility while planning your R & D 
2. Consider applying for an Overseas Finding or Advance Finding 
3. Conduct R & D, continue to self-assess and keep records 
4. Register for the program 
5. Claim your tax offset

Apply to register here 

For more information please visit the R & D Information page or contact our office. 

The Money Edge | Bundaberg