175% Australian Premium

Introduction

Removal of the R&D tax concession When considering how the R&D provisions apply to your circumstances, remember that for income years starting on or after 1 July 2011 you no longer use the R&D tax concession. You need to consider the new R&D tax incentive. The concession and the new incentive apply differently. For further information, including fact sheets and a calculator, refer to Research and development tax incentive - home.

We jointly administer the research and development (R&D) tax concession with AusIndustry.

The R&D tax concession is an Australian Government initiative to increase the amount of R&D being conducted in Australia. The R&D tax concession allows companies to claim a tax deduction in their income tax return of up to 125% (and in some cases up to 175%) of eligible expenditure on R&D activities.

The 175% Australian Premium may be available to eligible companies that increase their level of expenditure on Australian owned R&D above a three-year average, in years of income that start after 30 June 2007.