2021 Predictions: What is our next black swan?
As we’re approaching the end of the year, Andrew Mattner presents his predictions for 2021. What a strange old year we have seen. Never in my... Read more
To encourage R&D Incentive in Australia, make it easier for the businesses to access concessions and to navigate the economic impact of the pandemic, the government has proposed the following changes:
Aggregated Annual Turnover | R&D Intensity^ | Proposed Premium | Proposed R&D Tax Offset Rate | |
Company Tax Rate 25% | Company Tax Rate 30% | |||
Less than $20m | N/A | 18.5% | 43.5% | 48.5% |
$20m or more, or controlled by exempt entities | Less than 2% | 8.5% | 33.5% | 38.5% |
2% or more | 16.5% | 41.5% | 46.5% |
The government has stated that it will not proceed with the $4 million cap on annual cash refunds for companies with aggregated turnover of less than $20 million.
For companies with aggregated turnover of $20 million or more, the intensity tiers will be reduced from three tiers to two, with the increased R&D premium.
The starting date is deferred to 1st July 2021 from 1st July 2019.
Tax and tax planning can be a complicated and evolving process – it’s important to have an accounting partner who knows the game, is across all legislation and understands your situation and what you want to achieve. If you would like to know more about our tax planning services and how you could reduce your tax exposure, please call our office on (08) 8172 1444 or email our friendly team.
"Altitude Advisory works with us to find ways to improve our business unlike accountants we have used in the past who were only interested in taking the figures and doing our tax. They're always approachable and call us for a chat which shows us they're truly interested in our business."
Kerri Stutley, Tumby Bay Foodland