Quarterly R&D tax credit payments one step closer

The federal government has released the draft legislation, to provide the research and development (R&D) tax incentive through quarterly credits, for public comment.

AusBiotech and the biotechnology community have congratulated the government on its resolve to introduce quarterly payments from 1 January 2014. AusBiotech has been advocating for quarterly payments since its first submission on the tax incentive and is pleased to see the government responsive to the cashflow needs of small companies, giving companies the ability to smooth out cashflow over the year and provide increased predictability.

Following the August 2012 consultation paper that sought feedback on the design and implementation of R&D quarterly credits, the government has released the draft legislation and explanatory memoranda in preparation for the 2014 implementation.

R&D quarterly credits will be an opt-in element of the R&D tax incentive for companies with an aggregated turnover of less than $20 million. It will allow companies eligible for the R&D refundable tax offset to obtain the benefit of the offset on a quarterly basis during an income year, rather than waiting until an income tax return is assessed.

The government is interested in receiving feedback from interested parties on the proposed amendments to establish R&D quarterly credits. Comments are due by 10 May 2013.

AusBiotech members wishing to provide comments in support of the AusBiotech submission should contact Lorraine Chiroiu at lchiroiu@ausbiotech.org or 03 9828 1414.