The research and development (R&D) tax incentive encourages companies to engage in R&D benefiting Australia, by providing a tax offset for eligible R&D activities. Purpose of the R&D tax incentive The R&D tax incentive aims to boost competitiveness and improve productivity across the Australian economy by: • encouraging industry to conduct R&D that may not otherwise have been conducted • improving the incentive for smaller firms to undertake R&D • providing business with more predictable, less complex support Administration and registration departments The ATO and the Department of Industry, Innovation and Science (on behalf of Innovation and Science Australia) jointly administer the R&D tax incentive. Your R&D activities must be registered with the Department of Industry, Innovation and Science before the tax offset is claimed, and we determine if the expenditure claimed in your tax return for your R&D activities is eligible for the tax offset. Core components • whether or not your entity is eligible to register R&D activities and claim R&D tax offsets in any given year • a refundable tax offset for certain eligible entities whose aggregated turnover is less than $20 million • a non-refundable tax offset for all other eligible entities • you have incurred notional deductions of at least $20,000 on eligible R&D activities Tax offset for entities engaged in R&D • a 43.5% refundable tax offset for eligible entities with an aggregated turnover of less than $20 million per annum, provided they are not controlled by income tax exempt entities; • a 38.5% non-refundable tax offset for all other eligible entities (entities may be able to carry forward unused offset amounts to future income years).
R&D Tax Incentive Full Article
Once a new staff member has been employed by the company, it is important the administrative duties are followed closely. This can avoid confusion at a later date, particularly in regards to the award and conditions of employment. The following is a list of forms that would be typically handed out at the commencement of employment: • Tax file number declaration. • Withholding declaration (depends on situation) . • Superannuation choice form. • Fair Work information statement. • Relevant award or agreement. • New Employee Form.New Employee Full Article Link
We got a lot of enquiries about whether we should set up a family trust to avoid my personal tax, some clients are under PAYG withholding employment arrangement. I always said not everyone suitable to set up a family trust, all depends on individuals’ situations. Today, I would like to write some general information related to this topic. What is family trust? Family trust is a common type of trust used to hold assets or run a family business. A family trust is an inter vivo discretionary trust which means it is established by someone during their lifetime to manage certain assets or investments and support beneficiaries, such as family members.
The advantages of trusts. Why do people want to establish trusts? Full article link