R&D Tax Bill introduced to parliament

A Bill was yesterday introduced into parliament to jointly legislate for quarterly credits for companies entitled to the refundable 45% R&D Tax Incentive and to enact the $20 billion turnover cap for companies to be eligible for the 40% non-refundable R&D tax offset, as announced as part of the government’s A Plan for Australian Jobs in February.

Since its inclusion in the deal that saw the original R&D Tax Incentive pass the Senate, the quarterly payment legislation has been intended to take effect from 1 January 2014. The legislation would enable eligible taxpayers to claim anticipated R&D refunds on a quarterly basis based on a standard safe harbour amount, which may be varied.

The Bill will also limit access for very large companies or company groups with Australian aggregate assessable income of $20 billion or more, which would no longer be eligible to make claims for the R&D Tax Incentive from 1 July 2013.

If the Bill is not passed by parliament this week, it will lapse when parliament rises on Friday and would need to be reintroduced in the next sitting of parliament after the election.

To view the Bill, visit the Parliament of Australia website.