The Government has introduced a 175% Premium R&D Tax Concession valued at $460.0m over 5 years. In addition to the existing 125% R&D Tax Concession, a premium rate of 175% will apply for firms that undertake ‘additional’ investment in R&D.
The premium will apply to the increase in R&D as a proportion of turnover over the average of the previous three years. The premium will focus on components of R&D where the greatest economy-wide benefits would occur such as labour-related R&D. Non-current expenditure items on R&D (plant, pilot plant and core technology), leasing and interest would be excluded for the purpose of calculating the premium.
