Last year, the Australian government planned to implement a $2.4 billion cut to the R&D Tax Incentive by introducing new caps on cash refunds along with changes in how the R&D offset was calculated for both small and large companies.
With fears that companies will simply start undertaking R&D overseas, or halt activities altogether due to a lack of funds and tighter regulations, those plans have recently been put on hold as the senate has called for a delay on the legislation until further changes have been made.
The number of registered companies, first time registrants, and the amount of total R&D expenditure were all slightly down in the 2017 financial year compared to 2016 financial year, when the government last proposed a 1.5% decrease to the R&D tax offset.
It is important that Australia as a whole continues to focus on research and development activities moving forward and the R&D Tax Incentive is big contributor in making that happen.
Are you an Australian company that is undertaking research and developmental activities?
You may be missing out on essential funds to help continue your projects.
Contact [email protected] for assistance on how to apply.
