R & D Tax Credit
Eligible businesses will be entitled to a 12.5% tax credit for every dollar they spend on research and development. Currently the incentives on R&D come in the form of grants or a cash-up of tax losses. Government have allowed $1.0 billion over four years for the tax credit. Broadly:
- Applies to people in business with research and development expenditure in excess of $100,000.
- The tax credit of 12.5% on eligible expenditure.
- Tax credit expected to be refundable if the company has losses.
- Final details to be determined following public consultation.