The Australian Government’s continued focus on and support of research and development (R&D) means we are now one of the most attractive locations in the world to undertake R&D activities. The R&D Tax Incentive program is the cornerstone program that supports undertaking R&D and novel activities in Australia. This self-assessment program offers generous benefits to businesses investing in innovation.

Accessing government incentives to underpin your innovation

Accessing the R&D Tax Incentive can provide vital support for funding growth. It is an entitlement program and we are regularly updated by the administrators. The Grant Thornton Innovation Incentives team is across the latest developments from the Government to help our clients access this business incentive.

In 2020, the Government introduced major changes to the R&D Tax Incentive. Most importantly, the R&D Tax Incentive continued as the main platform of support for undertaking R&D in Australia and is also aimed at attracting innovative projects into Australia. There are several levels of support including a refundable offset of up to 43.5% for companies where their annual aggregated turnover is less than $20 million AUD. For those corporates over that threshold, they can access non-refundable support from 8.5% up to 16.5% of their corporate tax rate. The higher rate is available to companies that achieve an R&D intensity of greater than 2% of their total expenses. This is available to companies with an aggregated turnover of more than $20 million from 1 July 2021 onwards (depending on your financial year end).

In addition, we go beyond the broad-based program to support R&D in Australia by having dedicated grants specialists focusing on specific growth sectors grant programs. These include the Modern Manufacturing Initiative, incentivising growth opportunities, as well offering support for Australians that are exporting. Our team are across regularly released Federal and State Governments grants and other support packages you can leverage, and make law reform to help Australian business innovate and grow.

How we help

Our innovation incentives team works closely with companies from all sectors and all sizes. We can assist with accessing support when you are in the early stages of an idea, or alternatively 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 program can also be used to support new frontier developments and designs for an organisation. We have experience in all of these activities and can assist you with your annual R&D Tax claim process.

Grant Thornton has a large team of specialists that work alongside our clients to help make innovative concepts and ideas come to life by assisting with the government funding landscape. We can also identify and protect your IP and the foundations of your offering, by tapping into crucial areas of funding such as the R&D Tax Incentive.

Our team understands the R&D landscape you must navigate within your sector, including compliance obligations, balanced with accessing the commercial and financial help for true innovative success. We help businesses find savings, reduce expenses and document their IP processes – especially important as the expected level of record-keeping is higher for R&D than for other areas of tax.

Related content

View more

Subscribe to receive our publications

Subscribe now to be kept up-to-date with timely and relevant insights, unique to the nature of your business, your areas of interest and the industry in which you operate.