See also the related expense measures titled Rebate for Small Companies and R&D Start and the related revenue measure titled Backing Australia’s Ability - Premium 175% Rate for R&D Tax Concession in the Treasury portfolio.
In addition to the 175% Premium Rate - R&D Tax Concession, the Government has introduced a provision for a tax rebate equivalent to the 125% R&D Tax Concession to firms with a turnover less than $5.0m and with expenditure on research and development activities not exceeding $1.0m. The Rebate for Small Companies - R&D Tax Concession will cost $13.0m over 5 years.
The Rebate for Small Companies option will increase the incentive for business investment in R&D by assisting small firms, in particular companies in tax loss. Under this initiative, the Government expects to provide up to 1300 small companies a year with support. Companies that currently carry forward their R&D related tax losses will now be able to realise these losses once their tax return for the relevant year is assessed.
