The Australian federal government’s new R&D Tax Credit scheme is expected to start on 1 July 2011.

The R&D Tax Credit will replace the R&D Tax Concession. It will provide a targeted tax offset designed to encourage more companies to engage in research and development in Australia.The $1.8 billion R&D Tax Credit scheme will apply to activities and expenditure in income years commencing on or after 1 July 2011. It will deliver a 45 per cent refundable tax credit to companies with an aggregated turnover of less than $20 million and a 40 per cent non-refundable offset to all others.

Click here to read more information on the AusIndustry website.

In a joint media release issued 15 June 2011, Treasurer Wayne Swan and Minister for Innovation Kim Carr said that the Government would continue to work in partnership with the business community to get the most from this landmark reform. An advisory group will be established through the Innovation Australia Board to monitor the implementation and operation of the Credit. The Government, through AusIndustry, will run an extensive education program to ensure firms are kept up to date.
Click here for the joint media release from the Treasurer and the Minister for Innovation.

In an earlier media release, Innovation Minister Kim Carr said: “The new scheme will stimulate more of Australia’s two million businesses to undertake R&D rather than just the 8000 that benefit from the current concession.
“The R&D tax credit doubles the incentive for small and medium enterprises – the engine room of the economy – while increasing by a third the incentive for big business to undertake R&D.

“Small innovative firms are big winners from the new R&D tax credit, with greater access to cash refunds for their R&D expenditure and more generous rates of assistance,” Senator Carr said.