R&D Tax Incentive registration requirements released

A publication released by AusIndustry will help businesses understand the registration requirements for the R&D Tax Incentive.

The publication outlines what information will be required when businesses commence registering for the Incentive from 1 July 2012 and provides additional explanatory materials to help businesses complete their applications.

The Minister Assisting for Industry and Innovation, Senator Kate Lundy, said the new incentive, which will be accessed by more than 8000 businesses, represents the biggest reform to business innovation support in more than a decade.

“This is a transformational change to the way government supports business innovation in Australia,” Senator Lundy said.

“AusIndustry has been working closely with the Australian Taxation Office to implement the R&D Tax Incentive and this publication is designed to help businesses prepare for registration.

“It is the latest step in what has been an extensive consultation with Australia’s business community. More than 3000 people have attended public information sessions on the Incentive and AusIndustry has distributed material to more than 11,000 business and consultants who have registered for the former R&D Tax Concession.

“Businesses are able to register for the R&D Tax Incentive from 1 July and the online smart form will be made available in June 2012.”

The R&D Tax Incentive increases the rates of support for eligible research and development activities. For small and medium-sized businesses with annual turnover of less than $20 million, the rate of support above the normal tax deduction has doubled from 7.5 cents in the dollar to 15 cents in the dollar - a total tax offset of 45 cents in the dollar.

“This is particularly helpful for small and medium-sized businesses seeking to improve their productivity through innovation,” Senator Lundy said.

The new publication can be viewed here.