Forty-three and a half per cent of R&D costs will be reimbursed in cash to eligible companies with an aggregated annual turnover of less than A$20 million (approx. US$15 million). A 38.5% tax offset is offered to all other eligible entities.
Incentives covered include clinical trials, analytics, study drug manufacture, prototype manufacturing, the development of new computer algorithms, and many other types of R&D.
Companies can claim the cost of R&D activities conducted overseas in support of their Australian R&D project, when certain conditions are met.
There is a solid track record of successful claims by companies headquartered overseas when conducting research in Adelaide.
Before commencing R&D activities, investors interested in benefiting from the financial incentives must set up an Australian company with a local director. There is no requirement to hire full-time employees.
A formal agreement with the parent company is required.
The whole process is inexpensive and can take as little as a month. Importantly, all intellectual property remains with the parent company.
Specialised professionals with a track record of successful claims are available in Adelaide.
Adelaide’s banking system is available to provide a loan secured against the cashback amount.
The R&D Tax Incentive is an Australian Government initiative jointly managed by AusIndustry and the Australian Taxation Office. For further information please visit www.business.gov.au and www.ato.gov.au.
Health Industries South Australia is the South Australian Government agency helping health and life sciences companies invest in Adelaide.