Home » News » Is the R&D Tax Offset Refundable in Cash?

Is the R&D Tax Offset Refundable in Cash?

February 25th, 2016

Despite the fact that the Research & Development (R&D) tax incentive claim process can seem quite convoluted, the benefits of doing it properly are well worth the effort. But just how exactly is the benefit calculated and what do business owners gain in pocket?

The answer to this depends greatly on the size and nature of the company. To elaborate, the R&D Tax Incentive is provided in Australia through a tax based incentive program whereby the Australian Government provides companies with a tax benefit. However, the type of offset differs depending on the turnover of the company and the amount of R&D expenditure incurred.

In general, the following rules apply:

How-Can-the-RD-Tax-Incentive-Benefit-You new

Thus, as the above example reveals, if a company is in a loss then they will typically receive a cash back benefit. In contrast, if a company is in profit then this will result in a reduced tax payable.

In general, the 43.5% refundable offset is an often overlooked, yet worthwhile, option available for smaller companies and start-ups. Ultimately, a cash back benefit can provide a financial injection to help start-ups that are often cash-strapped.  For example, a start-up company that is in a loss position for tax purposes who spends $1 million on R&D will receive a $435,000 cash refund under this incentive.

Nonetheless, the reality remains that in many cases the claim is not easy. This is usually because identifying eligible expenditure involves a detailed and complex analysis of a company’s activities along with the application of the R&D tax rules. There can also be challenges in collating the essential documentation to provision a claim. Swanson Reed is a specialist R&D Tax consultancy firm that can assist your business in having the best chance of qualifying for the incentive. We’ve helped clients across many industry sectors access the R&D Tax Incentive, and as a result, the extra cash flow has enabled clients to further develop and perfect their core products and services.

Please contact Swanson Reed if you are interested to learn more about the R&D incentive and what this can mean for your business.

Are You Eligible?


Click here for the R&D Eligibility Wizard

R&D Audit Checklist


Click here for the R&D Eligibility Wizard

Categories

Archives

 
  
 Swanson Reed - Specialist R&D Tax Advisors 
 
 
 Swanson Reed - Specialist R&D Tax Advisors
  
 39 Google reviews 
 
  
 
 
 
 
  
 Swanson Reed - Specialist R&D Tax Advisors 
 
 
 Swanson Reed - Specialist R&D Tax Advisors
  
 39 Google reviews 
 
 
 
 
 
  
 
 
 
 Daniel McGregor 
 
 
 Daniel McGregor 
 
2022-08-11
 
 
  
 
I have been using Swanson Reed for my clients for more than a decade.  Having a specialist firm that can provide practical and commercial advice that produces real outcomes is very important and we have received great feedback from our clients.
Highly recommended.
  
 
 
  
 
 
 
 John 
 
 
 John 
 
2022-06-15
 
 
  
 
Damian and the rest of the team at Swanson Reed have been supporting us for several years.  We always appreciate their insights, expertise, and efforts.
  
 
 
  
 
 
 
 Rueben Rajasingam 
 
 
 Rueben Rajasingam 
 
2022-06-06
 
 
  
 
Experienced responsive Team. They have been a great help to me and my company navigate the R&D tax claim process and have provided invaluable advice.
  
 
 
  
 
 
 
 Enrique Esquivel 
 
 
 Enrique Esquivel 
 
2022-06-06
 
 
  
 
Damian and the team at Swanson Reed have been extremely helpfully and professional during all of our consultations. Highly recommended.
  
 
 
  
 
 
 
 Jess at Y&C 
 
 
 Jess at Y&C 
 
2022-06-03
 
 
  
 
  
 
 
  
 
 
 
 Anatole Kononewsky 
 
 
 Anatole Kononewsky 
 
2022-06-02
 
 
  
 
The Swanson Reed team have provided our company with exceptional professional advice and assistance for all of our R&D claims for many years - have always achieved great results with excellent value for their services.
  
 
 
  
 
 
 
 Payam Toloo 
 
 
 Payam Toloo 
 
2022-06-02
 
 
  
 
Damian Smyth and his team are very helpful, supportive and experts in their field of R&D Tax claims. I'm always happy with the work they do and been a customer of their for over 5 years.
  
 
 
  
 
 
 
 Melissa Doddy 
 
 
 Melissa Doddy 
 
2022-05-31
 
 
  
 
The Team at Swanson Reed are very experienced R&D Tax Advisors and gave us ongoing support with all of our R&D Claims, the consultants ensured we were always working with current legislative guidelines, gave us assistance with compiling technical and government documentation and went out their way to ensure they were with us for the entire process from beginning to end.  Highly recommended to anyone who needs assistance with working through what can at times be a daunting process.
  
 
 
  
 
 
 
 Gary Watson 
 
 
 Gary Watson 
 
2022-05-31
 
 
  
 
We can highly recommend Swanson and Reed as an R & D accountant. We have worked with them for several years now as they make our R & D claim so easy and communicate quickly with both us and our accountant.
  
 
 
  
 
 
 
 Rob van den Bergh 
 
 
 Rob van den Bergh 
 
2022-05-31
 
 
  
 
Always professional.