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.
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