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Oceania Research & Development Incentives

Innovative companies are playing key roles in their national economies, with research and development investments made by business being substantial drivers of growth and prosperity for nations. Due to this R&D incentive regimes are being reformed world wide at an unprecedented rate to accommodate and attract highly innovative companies to invest in their economy.

Many countries promote and encourage R&D operations in their economy as part of strategic plans to increase research activities and develop their nation. Countries which offer R&D tax incentives are considered favourable locations for internationally-mobile R&D companies.

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In Australia, from 1 July 2021 (FY22), the R&D Tax Incentive provides:

  • For companies with group turnover less than $20 million per annum, a 18.5% refundable tax offset above corporate tax rate; and
  • For companies with group turnover greater than $20 million per annum, a 8.5% OR 16.5% non-refundable tax offset above corporate tax rate for R&D expenditure up to and above 2% of total business expenditure respectively.
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The R&D tax incentive provides a tax credit at a rate of 15 per cent of eligible R&D spend up to $120 million. To be eligible, you must spend at least $50,000 per year on eligible R&D. Spend under $50,000 per year may still be eligible if you use an approved research provider to do R&D on your behalf.