R&D Tax Credit

Australia's new R&D Tax Credit makes Melbourne, Victoria one of the most attractive locations in the world for R&D.

The R&D Tax Credit replaces the R&D Tax Concession as Australia's principal initiative to support research and development. The new tax credit will apply to income years beginning on or after 1 July 2011.

Where a group’s annual turnover is less than $20 million, companies will be eligible for a 45% refundable credit, with no limit on the amount of expenditure claimable under this program. This is a significant increase from the existing limit of $5 million and the abolishment of a cap.

Where group turnover is over $20 million, companies will be eligible for a 40% non-refundable credit, equivalent to a 133% tax concession, one-third higher than the current basic rate of support.

Further, companies conducting R&D in Australia where intellectual property rights are held offshore (as for the current international premium R&D concession) will also be able to access this credit.

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Innovation Australia is an independent statutory body established to assist with the administration of the Australian Government's innovation and venture capital programs, including administration of the R&D Tax Credit.