With the Governments recent announcement of crossbench support for the new R&D tax incentive (the R&D Tax Credit), the new Bills are likely to be passed in the August sitting of Parliament and apply retrospectively from 1st July 2011. The new R&D tax incentive will replace the R&D tax concession and provided a targeted tax offset designed to encourage more companies to engage in research and development activities in Australia. With detailed guidelines for the new program several months away, our dealing with AusIndustry has provided us with an insight into the overall impact of the changes to the definitions of eligible R&D activities and expenditure.
This event explored:
- current status of the legislation
- key definitional elements of the R&D tax incentive
- core and supporting activities
- dominant purpose test
- practical implications on the new R&D tax incentive on a variety of industries the new compliance regime.