R&D Tax Incentive Rates Reduced by 1.5%
Last week the Budget Savings (Omnibus) Bill 2016 was passed through both houses of the Australian Parliament. 20 of the original 24 measures contained in the Bill were agreed to, including a 1.5% reduction in the rates of the tax offset available under the R&D Tax Incentive – a budgetary saving of $600m over the three years to 2019/20. Passage of the Bill means that, for income years starting on or after 1 July 2016, the R&D Tax Incentive available to companies with an aggregated turnover of less than $20m will be a refundable tax offset of 43.5%, and a non-refundable tax offset of 38.5% for all other entities.
More detailed analysis on this change can be found on our website – http://www.bsiinnovation.com.au/?p=3889 with the full text of the Bill being available here – http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5707