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  • R&DTI upcoming reforms podcast

    The latest episode of the Research and development tax incentive (R&DTI) upcoming reforms podcastExternal Link has been released by the Department of Industry, Science, Energy and Resources (DISER).

    In the podcast our Assistant Commissioner Jade Hawkins joins Kelley Wiggins, Acting General Manager of R&DTI at DISER to talk about the R&DTI reforms legislated on 14 October 2020.

    The reforms apply to income years beginning on or after 1 July 2021 with some administrative elements taking effect on 1 January 2021. The current incentive will remain in place until then.

    The podcast explores important changes to the refundable and non-refundable offset rates for companies with aggregated turnover:

    • below $20 million, the refundable R&D tax offset will be a premium of 18.5 percentage points above the claimant's company tax rate
    • $20 million or more, a two- tiered premium ties the rates of the non-refundable R&D tax offset to the incremental intensity of the R&D expenditure as a proportion of total expenditure for the year. The new rates will be the claimant's company tax rate plus:
      • 8.5 percentage points for R&D expenditure up to 2% R&D intensity
      • 16.5 percentage points for R&D expenditure above 2% R&D intensity.
       

    As these changes do not take effect until 1 July 2021, we will progressively update our guidance material to avoid confusion with current lodgments. Our online R&D calculator will also be updated to reflect the changes.

    For further information or assistance contact us via email R&DandVCLiaison@ato.gov.au

    See also:

    Last modified: 03 Dec 2020QC 64243