R&D tax credit draft legislation released
The Federal Government has released draft legislation for the new quarterly credits payment option for the R&D Tax Incentive refundable tax offset.
Releasing the draft legislation earlier last week, Assistant Treasurer David Bradbury said that the proposed legislation will assist smaller companies to undertake research and development by improving cash flow.
Mr Bradbury said that the new feature of the Tax Incentive would allow eligible small and medium companies to access their R&D refund on a quarterly instalment basis.
"This is the first time that Australian income tax law has provided for a refundable tax offset to be paid before the end of the income year. It adds to the tax reforms that the Government has already implemented to foster small business growth," Mr Bradbury said.
"The R&D Tax Incentive provides generous, easy-to-access support for small and medium sized companies that undertake eligible R&D."
The Minister for Climate Change, Industry and Innovation, Greg Combet said quarterly credits would make R&D more accessible to small companies, better supporting innovative companies in their early stages of growth.
"Quarterly credits will mean that, from 1 January 2014, eligible companies with an annual turnover of less than $20 million will be able to receive support during the income year that they are doing eligible R&D," Minister Combet said.
"Together with the new measures announced under the Government's Industry and Innovation Statement, A Plan for Australian Jobs, the R&D Tax Incentive will help support and encourage Australia's innovative businesses."
More information can be found here