THE RDTI
About the RDTI
The R&D Tax Incentive Conversation: How it works and what we can do for your company
About the RDTI
Research and development tax incentive
The Research and Development (R&D) Tax Incentive (RDTI) encourages companies to engage in R&D by providing a tax offset for eligible R&D activities.
​
Entities engaged in R&D may be eligible for:
-
a 43.5% refundable tax offset for eligible entities with an aggregated turnover of less than $20 million per annum, provided they are not controlled by income tax exempt entities
-
a 38.5% non-refundable tax offset for all other eligible entities (entities may be able to carry forward unused offset amounts to future income years).
​
legislation.gov.au
Income Tax Assessment Act 1997
​
How does the RDTI work?
The Federal Government provides tax offsets as a proportion of your R&D expenses. At the end of the year you and your tax advisor can simply take your R&D plan and documentation and transfer that to the RDTI application and your tax return. Once your tax return has been assessed then (provided you turn over less than $20M p.a.) you will receive cash from the government equal to 43.5% of what you spent on R&D during the year.
Who can claim the RDTI?
Anyone who is conducting R&D can claim the RDTI. The RDTI is currently claimed by thousands of companies across Australia across all sizes and stages of development.