R&D Tax – October 2016 deadlines

R&D Tax – October 2016 deadlines

Georgia King-Siem reminds companies to register R&D activities before the 31 October 2016 deadline to receive the full rate of the Incentive.


Director, Tax

KPMG Australia


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Dates pinned on a calendar

For companies with a 31 December balance, the statutory deadline to register Research & Development (R&D) activities for the income year ended 31 December 2015 is 31 October 2016.

This will be one of the last years those companies will receive the full rate of the Incentive:

  • Those with an aggregated turnover less than $20 million, will receive the full 45 percent refundable tax offset.
  • Those with an aggregated turnover of $20 million or more or majority owned by tax exempt entities will receive the full 40 percent non-refundable tax offset.

After that year and for everyone else with an income year commencing on or after 1 July 2016, the refundable R&D tax offset rate drops from 45 to 43.5 percent and the non-refundable R&D tax offset rate drops from 40 to 38.5 percent.

As the rate reduction does not take into account adjustments for feedstock and clawback, you should review your R&D claim to make sure you understand if and how those provisions might apply to you.

R&D Tax Incentive Review

There is also another important October deadline looming; public comment on the R&D Tax incentive Review. The Review Report makes six recommendations which, directly or indirectly, impact every aspect of the R&D Tax Incentive, ranging from its administration through to the benefit receivable.

We recommend those claiming the Incentive or considering doing so read the report, consider how the recommendations will impact you and make a submission.

You can find more information and make a submission through the review website.

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