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Research and Development Tax Incentive (R&DTI)

The Research and Development Tax Incentive (R&DTI) is a program designed to increase participation in the Australian Innovation Economy. Eligible businesses can receive a tax rebate on eligible R&D activity.

The amount varies depending on the size of the business and annual turnover, but can be broken down into two key categories:

SMEs and Start-ups:
SME’s and start-ups that turn over less than $20 million annually can receive a rebate up to 43.5% for R&D activities.

Large Businesses:
For large businesses with more than $20 million aggregated annual turnover, the offset is a non refundable carry forward deduction of up to 38.5%.

Key Requirements

In order to claim the R&DTI any activity must include:

  • Research
  • Development
  • Testing and experimentation
  • Creation of Intellectual Property

What expenses can be claimed?

Direct costs (fully claimable)

  •  Salary and superannuation
  •  Consumables i.e. single-use test equipment
  •  Equipment depreciation
  •  Experimental costs
  •  Prototype development

Indirect costs (claimable as a percentage of R&D activity)

  •  Rent
  •  Computer/IT
  •  Research-related travel expenses
  •  General maintenance
  •  Utilities
  •  Office maintenance
  •  Equipment i.e. office equipment used for both R&D activity and other work activity

What companies are eligible for funding?

Eligible Australian businesses conducting genuine research and development activities that will create new knowledge, with a commercial outcome. Generally, a business must be paying tax in Australia and be incorporated under Australian law. Generally individuals, limited partnerships and trusts are not eligible.

R&DTI key dates

For June year end companies

Registrations open for FY 22/23 activities: July 1st 2023

Registrations close for FY 22/23 activities: April 30th 2024

Advanced finding cut off for FY22/23 activities: June 30th 2023

For December year end companies

Registrations open for FY 22 activities: January 1st 2023

Registrations close for FY 22 activities: October 31st 2023

Advanced finding cut off for FY22 activities: December 31st 2022

How can Avant Group help?

When you’re a business owner, you may not have time to work through the red tape and audits required to apply for government grants.

Avant Group is your partner for grant success! We take all the hassle out of the entire grant application process from working through the red tape, writing the application and managing audit and reporting requirements – so you can focus on running your business.

Success only fees

Avant Group works on a success only fee basis.

We also offer:

  • All AusIndustry auditing management included at no additional cost
  • Hands on technical project management covering application writing and administration aspects
  • A highly skilled advisory team with consultants from engineering, marketing and finance disciplines
  • Government accreditation
  • A dedicated account manager who will work with you every step of the way with your grant application

Want to know more? Contact us for an obligation-free assessment of your R&D eligibility.