The 2009 Australian Federal Budget outlined an enhanced Research and Development Tax Concession scheme
From 2010-11 the Government will replace the current R&D Tax Concession with a simplified Tax Credit.
The new credits (either a 40% or 45% credit), are equivalent to a 133% or 150% tax deduction respectively.
The 45% credit applies to firms with an annual turnover of less than $20 Million, whilst the 40% credit applies to foreign owned firms and those with an annual turnover of greater than $20 Million.
The refundable 45% Tax Credit will be available to small companies in tax loss, with no limit on the level of R&D expenditure i.e. firms will receive a tax refund of 45% of their R&D spending when they file their tax return, even if they are in tax loss.
The current Tax Concession works in the same way but at a lower level equivalent to a 125% tax deduction rather than a 150% tax deduction, and with a $2 Million cap on R&D expenditure.
Visit www.ausindustry.gov.au
