Research And Development Registration
If you are operating a company with a turnover under $5M and with expenditure on research and development from $20,000 to $2M in aggregate, then the company can claim a tax rebate of 37.5% (or possibly 52.5% on some component) of the R & D expenditure incurred during 2009/10.
If the company’s turnover is over $5M and the company has undertaken research and development projects exceeding $20,000 in aggregate during 2009/10, the company can claim a tax deduction of 125% (or possibly 175% on some component) of the R & D expenditure incurred during 2009/10.
To claim these benefits the company must register with AusIndustry prior to 30 April 2011 or the date of lodgement of the company’s income tax return.
To be eligible to claim the research and development expenditure, the company should have prepared a research and development plan for each research and development project and to have kept costs and manpower allocation records to substantiate the research and development claim.
If you would like any further details regarding the operation of the research and development laws, please contact us.