Cash back for R&D: What you’re missing and what you need to know!

Mark Freidin

3rd May 2016

At some point most online retailers are investing sizeable amounts of money into ongoing software development projects, and with up to a 45 per cent rebate on R&D technology spend available, this should be of interest to retailers.

Who’s eligible for the R&D Tax Incentive Program? Not sure?

If an eligible R&D entity is conducting R&D activities then you may be eligible to apply for the Australian government R&D Tax Incentive Scheme. This is a broad-based, market-driven program that aims to boost competitiveness, improve productivity and deliver economy-wide benefits to Australia, suggests Aqua Capital’s Angela Woo, a specialist consultant experienced in assisting emerging technology companies to commercialise their technology through accessing various funding sources.

This could mean that apps, unique website features or web development or software developed to improve the profitability and productivity of a business could be eligible for a rebate from the tax office if it meets the broad criteria for R&D.

The Australian government encourages companies that are innovative and contribute to the growth and success of the Australian economy. The R&D Tax Incentive allows companies to claim up to 45 per cent of their spend on eligible activities. That’s 45 cents for every dollar spent on eligible R&D activities which may be paid as a cash refund.

If you are an eligible R&D entity and are spending more than $20,000 on eligible R&D activities in a given financial year you may be eligible. If you are eligible then you must register your R&D activities for every income year within 10 months of the end of your company’s income year, i.e. if your company’s year end is June 30 then the deadline for registration is 30 April, suggests Woo.