Posted: 25 January 2024 ![R&D action!](https://www.essbiztools.com/images/zoo/blogs/bas-updates/BASU2024/basp260124.jpg) # R&D action! #### Business Advisory Services Update Companies with turnovers over $20M can also claim the R&D offset but on a different basis to that available for companies with turnovers under $20M. For large companies, the non-refundable R&D tax offset is the company’s corporate tax rate plus an incremental premium – a percentage of the company’s eligible R&D expenditure as a proportion of the company’s total expenditure All eligible R&D expenditure up to 2% R&D intensity will receive a non-refundable R&D tax offset equal to the company’s corporate tax rate +8.5% premium. If eligible R&D expenditure is above 2% R&D intensity will receive a non-refundable R&D tax offset of the company’s corporate tax rate +16.5%. Another myth relating to R&D is that you can only claim the expenditure if the experiments were positive. This is incorrect. As long as the required documentation has been maintained, the company can claim R&D tax offset, even if the experiments did not confirm the hypothesis. The first lodgement relative to R&D activities is the **‘R&D Tax Incentive Application’**. This can be lodged at any time after the end of the financial year, but must be lodged within 10 months of the end of the financial year, normally 30 April. Clients with turnovers under $20M who are trading at a loss can be very keen to lodge the R&D Tax Incentive Application soon after 30 June, because once this application has been processed and the reference number issued by AusIndustry, the company’s taxation return can then be lodged which could trigger a refund from the ATO. R&D appears to be a big secret. Many accounting firms are not promoting R&D assistance to clients. Now is the time to take action because there are only three months remaining for the lodgement of the R&D Tax Incentive application for the 2022/23 FY. **ESS BIZTOOLS** has developed the **R&D Product Package** to assist accountants and bookkeepers to proactively support companies undertaking R&D activities. Contact us on 1800 232 088 or email [](https://www.essbiztools.com/javascript:/*%20This%20email%20address%20is%20being%20protected%20from%20spambots.*/)[](https://www.essbiztools.com/javascript:/*%20This%20email%20address%20is%20being%20protected%20from%20spambots.*/) to find out more. #### ESS BIZTOOLS Blogs ### Recent Posts... 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