The R&D Tax Incentive: Helping Aussie SMEs fire on all cylinders

Australian Bureau of Statistics data shows that businesses that innovate are: three times more likely to export, twice as likely to increase employment, and over 40 per cent more likely to report increased profitability. And the R&D Tax Incentive can help.

Australian Bureau of Statistics data shows that businesses that innovate are: three times more likely to export, twice as likely to increase employment, and over 40 per cent more likely to report increased profitability. And the R&D Tax Incentive can help.
 

Research and development (R&D) drives a lot of this innovation, and every eligible company undertaking R&D can access generous Australian government support. In fact, the R&D Tax Incentive helps over 10,000 companies invest in R&D each and every year.


From developing engine cooling solutions for world-class race cars to farming salmon, from manufacturing mining machines to generating energy from the ocean’s tides, the R&D Tax Incentive is an important driver of productivity and economic growth for many Aussie SMEs. Just ask Marshall Vann, General Manager of PWR Performance. The south-east Queensland-based company exports its engine cooling solutions to many of the top motor racing teams around the world, including Red Bull Racing, the dominant force in Formula 1 over the last four years.

“To be successful you need the best product, a reason for people to buy,” Vann said. “The R&D Tax Incentive helps us achieve our best – it supports the R&D that ensures we are offering the best product on the market.”

As the Australian Government’s principal measure to encourage industry innovation through investment in R&D, the Incentive provides a 45 per cent refundable tax offset for entities with a turnover of less than $20 million per annum and a 40 per cent offset to other eligible entities.

Just like Vann and PWR Performance, you and your business could be in a position to access the benefits of the R&D Tax Incentive to support your business innovation. For more information, visit this AusIndustry website now, email This email address is being protected from spambots. You need JavaScript enabled to view it., or call 13 28 46.

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