In some good news for innovators and R&D entities in Australia, the controversial budget proposal to reduce the R&D Tax Incentive rates by 1.5 percentage points has failed to pass the Senate.
Earlier this week, Labor and the Greens joined forces to defeat the Bill. This means that from 1 July 2015 onwards, entities undertaking eligible R&D activities are still able to claim either a 45% refundable tax offset, for companies with a turnover of less than $20M, or a 40% non-refundable tax offset, for companies with a turnover of +$20M, on costs associated with carrying out eligible R&D activities.
However, the Senate has passed amendments to introduce a $100M R&D annual spending limit to replace the $20 billion turnover exclusion from the incentive previously proposed. This amendment is now with the House of Representatives for consideration.
The 30 April 2015 deadline for registrations is fast approaching for companies who want to claim their R&D expenses for the 2013/14 financial period. Watermark Advisory Services can assist companies in compiling an accurate and timely R&D Tax Incentive application to meet this deadline.