In this months contribution to Startup Daily, we talk about the R&D Tax Incentive with Scott Warnock from PwC. We have previously talked to Scott about eligibility for R&D tax incentives and how the incentive can benefit businesses around Australia.
We go through some of the key questions that businesses ask around the R&D tax incentive:
What is the R&D Tax Incentive opportunity?
The R&D Tax Incentive is the Australian Government’s key program to support R&D and innovation. It provides companies with up to 45 cents back for every eligible dollar, even in many cases where start-up companies are not yet paying tax.
Why should I lodge my application so soon after year end?
The benefits can provide much needed funding for startups. Most startups are pre-revenue and therefore eligible for a cash refund up to 45 cents for every eligible dollar. The sooner you lodge your application and the company income tax return, the sooner you receive the refund (and cash in the bank)!
What is the minimum amount I can claim?
The minimum expenditure to be eligible for an R&D Tax Incentive claim is $20,000. In PwC’s experience in working with a large number of startups, the base level of expenditure to ‘justify’ an R&D claim is approximately $50,000.