The long awaited and advertised R&D Tax Credit Scheme was planned to be operational from 1 July 2011. Given the delays in the passage of this legislation through the Parliament the introduction date will most likely be postponed until 1 July 2012.
The legislative process for the Tax Laws Amendment (Research and Development) Bill 2010 is progressing slowly.
The Bill was reintroduced into the House of Representatives on 30 September 2010 and incorporated the majority of the changes suggested by the Senate Economics Legislation Committee report of 15 June 2010, including clarifying the objects clause and the definition of core R&D activities to explicitly recognise that R&D can occur in a factory context or as experimental development.
The Bill was passed by the House of Representatives on 22 November 2010 and was then introduced into the Senate on 23 November 2010. It is now listed for debate in the Autumn 2011 sittings of Parliament.
The new R&D Tax Credit is intended to provide increased Government support to Australian businesses to undertake research and development activities. The two core components of the new R&D tax incentive package are
- 45 per cent refundable R&D tax credit (equivalent to a 150 per cent deduction) for companies with an aggregated turnover under $20 million, doubling the base rate of support available under the existing R&D Tax Concession; and
- 40 per cent non-refundable tax credit (equivalent to 133 per cent tax deduction) for all other companies, increasing the base rate of support by a third.
Pattens Group have a complete understanding of the new legislation and have presented to the 2010 NSW CPA Conference on teh proposed scheme. Pattens can provide comprehensive educational information and support, including guidance material for the new R&D tax incentive. While Ausindustry are planning information and education sessions to assist businesses understand the new program when it is passed by Parliament, they will not advise how businesses can maximise their benefits under the program. If you require support from the industry leading grants specialists, call Pattens on 1800 PATTENS