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    R&D tax incentive – 1 July 2011 to 30 June 2021

    Find out about the tax incentive, if you're eligible and how to register for income years 1 July 2011 to 30 June 2021.

    About the R&D tax incentive
    Explains how the research and development (R&D) tax incentive program works and its aims.

    Explains eligible entities, eligible activities and eligible notional deductions.

    Registering and dealing with AusIndustry
    How to register your R&D activities with the Department of Industry, Innovation and Science and the effect of AusIndustry Findings.

    How to treat clawback adjustments and feedstock adjustments, plus what to do if you are registered for GST.

    Self-assess before you claim
    Explains your responsibility under self-assessment to assess the R&D activities you are conducting and the amounts you wish to claim.

    Keeping records
    Describes records to verify the amount of the expenditure, the nature of the R&D activities and relationship of the expenditure to the activities.

    Correcting mistakes, disputing decisions and making amendments
    How to vary or amend your details, lodge a dispute or objection and amend your tax return.

    Getting help on the R&D tax incentive
    Tips on using a tax agent or R&D consultant, an explanation of who administers what and a description of what we offer.

    Getting the incentive right
    How self-assessment works, what industries and issues concern us and how to contact us if you think you might have it wrong.

    R&D claims for income years starting on or after 1 July 2021
    How to apply for the R&D tax offset for income years commencing on or after 1 July 2021.

    Transition from the R&D tax concession to the R&D tax incentive
    Prior to 1 July 2011, the R&D tax concession allowed 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.

    R&D refundable and non–refundable tax offsets
    The rate of the R&D tax offset and whether it is refundable or not depends primarily on the R&D entity's aggregated turnover.

    Grouping for aggregated turnover purposes
    Use grouping rules to work out if your entity is eligible for the refundable tax offset.

    Expenditure incurred to an associate
    If you incur expenditure to an associate and you pay that amount in the same year you can claim a notional deduction for that amount in that year.

    For whom are R&D activities conducted?
    Entitlement to the R&D tax incentive offset is based on an eligible company having incurred expenditure on R&D activities that it can notionally deduct.

    Feedstock adjustments
    Read about what a feedstock adjustment is and how it applies when obtaining an R&D tax incentive offset.

    Clawback adjustment
    Read about what a clawback adjustment is and how it may affect your income tax.

    Who can claim
    This guide will help you work out whether you are an eligible R&D entity, and when R&D activities are conducted for you.

    Amounts you can claim
    Under the R&D tax incentive, an amount you can claim is called a 'notional deduction'.

    Clawback adjustment guide
    This guide will help you determine if a clawback adjustment is required and how to calculate it.

    Keeping records and calculating your notional deductions
    Your business and tax records must show what R&D activities you are undertaking and support the amounts you claim.

      Last modified: 21 Nov 2022QC 70951