Research and Development Tax Incentive The Government has announced an amended package of the Research and Development Tax Incentive (R&DTI) reforms in the 2020–21 Budget that will now apply from the first income year commencing on or after 1 July 2021. The changes will include: For companies with an aggregated turnover of $20 million or more, the Government will introduce a two-tiered premium that 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 per cent R&D intensity 16.5 percentage points for R&D expenditure above 2 per cent R&D intensity For companies with an 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. Increase the R&D expenditure threshold from $100 million to $150 million per annum. Additionally: improving the transparency of the program by publicly disclosing R&D claims greater enforcement activity and improved program guidance to participants amendments to technical provisions. Legislation and supporting material Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020External Link was introduced into Parliament on 7 October 2020. This legislation supersedes the Treasury Laws Amendment (Research and Development Incentive) Bill 2019. More information 2020–21 Budget, Budget paper no 2External Link page 19 The Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019External Link, was introduced into Parliament on 5 December 2019. The Senate referred the Bill to the Economics Legislation CommitteeExternal Link which is due to report by 12 October 2020. Closing date for submissions was 6 March 2020. 2019–20 MYEFO, Appendix AExternal Link Policy decisions taken since the 2019 PEFO, page 165 Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) BillExternal Link was introduced to Parliament on 20 September 2018 and lapsed on 11 April 2019. The Senate Economics Legislation Committee considered this Bill and reported on 11 February 2019. Exposure draft legislation and explanatory materialExternal Link 2018–19 Budget Paper No.2This link will download a file page 21 Budget fact sheet: Reforming the R&D Tax IncentiveThis link will download a file The findings of the 2016 Review of the R&D Tax IncentiveExternal Link Research and Development Tax Incentive, the Government has announced that they will amend the Research & Development Tax Incentive (R&DTI). Last modified: 08 Oct 2020QC 58091