Government grants & concessions
Proposed changes to Research & Development laws
On 18 December 2009, the Federal Government released Exposure Draft legislation seeking to replace the current R&D Tax Concession Program with a new R&D Tax Incentive Program.
Upon its release, the more contentious of the proposed changes received intense criticism from the business community, industry associations and professional advisers. There was a real and genuine concern that the new program, if enacted in its proposed form, would have an immediate and adverse impact on the level of R&D conducted in Australia by Australian businesses.
In response to this, the Federal Government directed Treasury to make changes to the proposed program to ensure that more companies and more projects are eligible for financial support for their R&D activities. On 31 March 2010, Treasury released a second Exposure Draft which, while addressing some of the more contentious issues associated with the original Exposure Draft, nevertheless presents its own difficulties.
Whilst awaiting further information about the new R&D Tax Incentive Program, BDO can continue to assist you regarding the existing R&D Tax Concession Program. We are also able to provide advice and assistance to those who wish to start preparing for the new program, in order to ensure that systems are in place and you are ready for the changes expected to come in July 2010.
The Government provides a range of grants and concessions to assist Australian businesses to become increasingly competitive in the global market place. The most well known and utilised concessions are the research and development (R&D) tax concession and the export market development grant (EMDG).
We have experts in Government grants and concessions who specialise in assisting businesses to maximise their claims. We advise on the availability of such concessions, assist with preparing documentation and can communicate on your behalf with the relevant government bodies.
Sound familiar?We can help you find the solutions to these issues and more:
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How can we help you?
We provide a range of services in the following areas:- Research and development (R&D) tax concession
- Research and development (R&D) tax offset
- EMDG
- Other grants
Service details
A detailed description of our Government grants and concessions services is provided below.
Research and development (R&D) tax concessions
The research and development (R&D) tax concession is a tax deduction equal to 125% or 175% of the research and development (R&D) expenditure. In order to claim the concession, businesses need to have in place significant documents, including research and development (R&D) plans and records of the research and development (R&D) activities. We assist clients on the preparation of necessary documentation and can assist with preparing the application. We also review clients' research and development (R&D) activities to determine if such a claim exists, as many businesses fail to identify all of their eligible activities.
Research and development (R&D) tax offset
Small companies may be entitled to claim the research and development (R&D) tax offset rather than claiming the research and development (R&D) tax concession. The research and development (R&D) tax offset is a cash rebate that can seriously assist a company's cashflow. We can help you to prepare the appropriate documentation and application.
EMDG
The EMDG is a cash grant available to aspiring and current exporters which alleviates the costs associated with exporting their goods and services in the global marketplace. Our experts review clients' activities and costs and advise on the availability of the EMDG. We also assist with preparing the application to AusTrade.
Other grants
There are a number of other industry grants available to businesses to assist them to compete in the global market place. We can advise on the availability of these grants and the cost and benefits of applying for them.
