The R&D Tax Incentive has been helping fuel Australian innovation for decades. The R&D Tax Incentive is an Australian Government initiative aimed at lowering the cost of pursing technological innovation for Australian businesses.
It was created with local businesses and new technology in mind for all sectors, spurring more companies to engage in more Australian based R&D and create economies for the future.
The R&D Tax Incentive encourages businesses from overseas to consider using Australia as a hub for developing their R&D.
Over 13,000 businesses nationally employ the benefit with the lion’s share going to manufacturing (32%), scientific/technical (20%) and IT (17%).
It also delivers real cash savings with around $5 billion in benefits being facilitated in the 2022 financial year.
The major aims of the incentive as stated by government include:
- Boosting competitiveness and improving productivity across the Australian economy;
- Encouraging industry to engage in new R&D activity;
- Providing a predictable means of obtaining government support for their innovative venture; &
- Providing an outlet for smaller and early stage ventures to recoup some of the costs in respect of their development activities.