Is your business in a place where you’re considering whether it’s time for growth? Two things you may want to consider is whether you’re eligible for Research & Development (R&D) tax incentives, and if you qualify for an Export Market Development Grant (EMDG).
Whether you’re looking to expand your business within Australia, or beyond our borders, Research and Development (R&D) is an invaluable tool. However, R&D can also be a costly undertaking, and one which many business shy away from due to the high overhead. What many business owners aren’t aware of, however, is that significant R&D tax incentives and credits are available for eligible businesses. These R&D incentives often go unused or under-utilised due to a lack of understanding – the intricacies of eligibility are often not fully realised by business owners.
The Research and Development Tax Incentive (R&DTI) is designed to offset the expense of eligible R&D activity, which ultimately provides benefits to the Australian economy in the long-term. If your R&D activities are eligible, you may be able to qualify for up to 43.5% tax offset at time of tax return lodgment. In order to claim the R&D offset on your next tax return, you’ll need to register your company’s R&D activity under the R&DTI program. Whether this offset is refundable or non-refundable is dependent on your company type.
To qualify for this incentive program, the Australian Government states you must:
- Be a company that is liable to pay income tax in Australia
- Conduct at least one activity that meets the definition of a core R&D activity
- Have eligible R&D expenditure greater than $20,000
In addition, you may be able to claim for specific R&D activities that have been completed overseas, depending on your circumstances. A financial professional can assist you in determining your eligibility, identifying relevant R&D activities, and completing your application and supporting documentation.
An EMDG is a financial assistance scheme from the Australian Government, specifically for businesses who are seeking to boost their international sales. The grant is for reimbursement of expenditures for promotional activity aiming to increase overseas business, and is available to both existing and new Australian exporters. If this applies to your business, you may be eligible for up to 50% of your promotional expenses above $5000, to a maximum of $150,000. These grants can cover a wide range of promotional activities, ranging from fees for trade fairs, conferences or seminars, costs for marketing collateral and advertising, to engagement of marketing consultants, or other overseas business representation.
Applications for an EMDG open on 1 July 1, 2020, so now is the time to start thinking about whether this may be appropriate for your business. An EMDG consultant can help you assess your eligibility and prepare and lodge your application for the best chance at qualifying for this assistance scheme. A successful applicant may qualify for up to 8 grants, which can make a huge difference to business operations.
How can Halkin Business Partners help?
Our consultants at Halkin have been working with top third party specialists in the areas of R&D and EMDG Grants to assist our clients with their application and claims. We also work with specialists in all type grants available to Australian Business’s.
With the R&D Grants application for the 2018/2019 Financial year being extended till 30 September and EMDG Grants commenced applications from 1 July, let us help you to work with a specialist to put in action as soon as practicable. For more information on Halkin’s service offering contact us.