R&D Tax Incentive Eligibility Tool

The process of identifying R&D activities and expenditure can sometimes be daunting for companies that have not previously pursued incentives or grants, or for companies that lack time and resources to undertake the often complex eligibility process.

Many businesses are unaware that they are even eligible to make a claim, and if they do, they can sometimes feel that it is too difficult or expensive to do so.

To assist, BDO now has available an easy to use online tool to help you to assess all of the R&D tax benefits for which you may be eligible. This tool is an initial diagnostic that allows you to understand whether your business has a basis for preparing a claim.

With the recent changes to the R&D Tax Concession, replaced by the R&D Tax Incentive (Credit), which retrospectively takes effect for income years that commenced on or after 1 July 2011, it is important that organisations embark on this process before 30 June 2012.

The recent changes under the new R&D Tax Incentive increases the amount of financial assistance provided to companies through:

• A 45% refundable R&D tax offset available to companies with an aggregate annual turnover of less than $20 million. This equates to a benefit of 15 cents for every dollar spent on R&D
• A 40% non-refundable R&D tax offset available to companies with an aggregate annual turnover of $20 million or greater (with any unused offset amounts capable of being carried forward). This equates to a benefit of 10 cents for every dollar spent on R&D.

The BDO R&D Tax Incentive Eligibility Tool helps you to take the first step and makes it easy to  identify whether you have a basis for making a claim and if so, what to do next.

To access the BDO self assessment tool click here.

If you would prefer to talk to one of our experts, BDO has R&D and Indirect Tax specialists who can provide tailored assistance to suit your needs.