Innovative companies play a crucial role in our economy. Research and development (R&D) investments made by businesses are a substantial driver of growth. Consequently, the government offers a generous tax incentive to accommodate and attract highly innovative companies to invest in the economy.

The research and development tax incentive is arguably Australia’s premium government business incentive for innovation. Unfortunately, many businesses in Australia aren’t aware of the significant cash flow benefit they could be adding to their business by using the tax incentive.

Elderton Group’s R&D team are experienced in this field, and we understand the intricacies of R&D tax incentives. Whether you already know you are eligible for the R&D tax incentive or need our experts to let you know whether you are eligible, we are well-positioned to assist you.

We can help you understand the strategic value of R&D to your business and help with writing and submitting all the required paperwork. We also help with all record keeping and management of any possible reviews.

About the R&D Tax Incentive

The R&D Tax Incentive (R&DTI) offers a company whose revenue is below $20 million an additional 18.5% benefit on any of its R&D spend. Companies with a turnover of over $20 million also receive a generous benefit, depending on the intensity level of their R&D expenditure.

If the company is operating at a loss, the extra benefit would be recoverable as a cash refund. For example, if a company with a standard base tax rate (25%) incurred $100,000 of R&D expenditure and were in a loss situation, the company would be entitled to a $43,500 cash injection through the R&DTI.

On the other hand, if the company reported a profit, they would be entitled to an additional 18.5 per cent tax benefit on their R&D spend. A critical point to note is that the R&DTI works on a financial year basis, meaning that a company can claim on their R&D expenditure for their past financial year’s operations.

The R&DTI is not only available to technology companies; it is also available to any company engaged in a project where new knowledge is being created and may be eligible.

Ask yourself the following question: “Are we doing something in our industry that is different from the competition and new in the market?” If the answer is yes, give us a call today!

We have provided a short video that explains how to R&DTI operates and what benefits are available. You can see the video


R&D Tax Incentive Claim Preparation

The preparation of an R&D Tax Incentive claim involves:

  • Collation and analysis of technical information.
  • Preparation of formal government documents and additional technical documentation.
  • Application of detailed accounting methodologies and expenditure documentation to lodge with your company tax return.
  • Application of the R&D tax legislation and AusIndustry and ATO administrative processes.

Elderton R&D are experienced in preparing successful R&D Tax Incentive claims. We are able to assist in all aspects of the R&D tax incentive claim preparation process, including:

  • Identification of eligible R&D activities to be included in the claim.
  • Technical scoping of eligible R&D projects.
  • Preparation/updating of R&D substantiation documentation.
  • Collation of eligible R&D expenditure for inclusion within R&D Tax Schedule and R&D Applications.
  • Preparation and lodgement of the Application for Registration of R&D Activities.
  • Preparation and finalisation of the R&D Tax Schedule.
  • Provision of a claim summary letter.
  • Advice relating to an AusIndustry review or ATO audit.

Not sure where to start?

If you think your company might be eligible to make a claim under the R&D Tax Incentive, please book an appointment today to speak with one of our R&DTI experts.

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