What is the Research and Development Tax Incentive (R&DTI) and is my business worth it

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The Research and Development Tax Incentive (RDTI) is a government program that provides tax incentives to businesses to encourage innovation and research and development (R&D) activities. It is designed to stimulate investment in R&D, which is critical to Australia’s economic growth and job creation.

The RDTI offers tax offsets for eligible R&D activities to help businesses offset the costs of their R&D investments. The offsets can include up to a 40% refundable tax offset on eligible expenditure, as well as non-refundable tax offsets for other expenditure.

So, is your business eligible for the RDTI?

The program is open to businesses of all sizes, from small to large, including start-ups and established businesses. To be eligible for the RDTI, your business must be registered for GST and be undertaking eligible R&D activities. Eligible activities include activities that are considered “experimental” and involve the application of scientific or technical knowledge and skills to develop new or improved products, processes or services.

If you think your business is eligible for the RDTI, you should contact the Australian Tax Office to determine if you are able to access the incentives.

In conclusion, the RDTI is a great way to offset costs associated with R&D activities and can help businesses stimulate investment in R&D. However, it is important to determine if you are eligible for the incentives before taking advantage of them. If you think you may be eligible, contact the ATO to find out more.