Innovation, incentivised: How key R&D Tax regimes compare around the world
InsightCompare key R&D tax incentive regimes worldwide. See how global innovation funding, benefit levels, and eligibility differ across major jurisdictions.
The R&D Tax Incentive is Australia's flagship program to support businesses investing in innovation.
The program directly aligns with the Australian Government's focus on increasing total investment in research and development by offering businesses generous benefits to offset some of the costs for eligible R&D.
About the R&D Tax Incentive
Supercharge innovation and maximise savings through the R&D Tax Incentive - unleash the true potential of your research and development.
Are you developing new or improved innovative products or processes, undertaking experimentation or attempting to solve technical unknowns? If so, you may be entitled to access the R&D Tax Incentive program.
The R&D Tax Incentive can provide vital support for businesses by funding growth and fostering future innovation. As an entitlement-based program, it is open to a broad range of industries. From the early stages of an idea, to when you are seeking to diversify via innovation within an established brand or business (including carrying out product or process improvements) the R&D Tax Incentive is a key platform to attract innovative projects to Australia.
What does a R&D tax offset look like for you?
There are several levels of support including a refundable tax offset for companies with an annual aggregated turnover less than AUD $20m and a non-refundable tax offset for companies with an annual aggregated turnover of $20m or more.
1. Refundable R&D Offset
Aggregated turnover of less than $20 million.
- Refundable tax offset equal to your corporate tax plus an 18.5% premium.
Potential to receive a cash refund.
Refundable example:
For example, if a company spends $200,000 on eligible R&D activities in a financial year, the company may be entitled to a refundable R&D tax offset of 43.5% (i.e., 25% + 18.5%), equating to $87,000. This will reduce any tax payable, with any remainder available as a cash refund.* (assuming a corporate tax rate of 25%)
2. Non-refundable R&D Offset
Aggregated turnover of more than $20 million.
- Non-refundable tax offset equal to your corporate tax plus an incremental premium based on R&D intensity.
- R&D expenditure up to 2% R&D intensity equals an 8.5% premium.
- R&D expenditure above 2% R&D intensity equals a 16.5% premium.
Tax saved (immediately or in the future).
Non-refundable example:
For example, if a company spends $500,000 on eligible R&D activities in a financial year, the company may be entitled to a base non-refundable R&D Tax Offset of 38.5% (i.e., 8.5% + 30%), equating to $192,500. If the company’s R&D expenditure exceeds an R&D intensity of 2%, it may be able to access a higher R&D tax offset rate of 46.5% (i.e., 16.5% + 30%).* (assuming a corporate tax rate of 30%)
Why choose us?
Industry knowledge
Supporting hundreds of clients each year, our team has a wealth of experience in making R&D claims in a broad range of industries.
Proactive and efficient support
Our real time R&D approach and proactive check-ins ensure you stay ahead of the curve, positioning you to finalise your R&D claim promptly and efficiently.
Governance led approach
Our services are designed with a strong governance focus. We collaborate with you to establish robust R&D processes, methodologies, and documentation.
Global R&D incentives mindset
Through our understanding of international R&D incentives, we leverage the expertise of our network to support navigating and maximising global opportunities.
How we can help
Activity Identification
Identifying R&D activities and ensuring annual compliance with R&D Tax Incentive procedures and provisions.
R&D Compliance
Preparation of the R&D Application Form and R&D expenditure calculations.
Health Check
R&D Health Check on previous or current R&D Tax Incentive claims.
Governance
Implementing R&D Tax Governance Frameworks.
Documentation
R&D documentation workshops and process recommendations.
Support for R&D Financing
R&D Comfort Letters to assist with R&D financing.
Overseas / Advance Findings
Supporting to assist with international R&D through Overseas / Advance Findings.
Technical Advice
Memorandum of advice in relation to specific R&D Tax provisions and guidance.
Regulator Review
Providing support during ATO and Department of Industry, Science and Resources reviews.
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