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What is the R&D tax credit?

The R&D tax credit is a program created by the ATO to incentivise companies contributing to the economy through Research and Development.

Companies are eligible to claim back up to 43.5% of eligible spending, and that includes salaries, subcontractors, and R&D relevant expenses. This incentive is uncapped for salaried expenditure and for many high-growth companies, it can add up to multiple hundreds of thousands or even millions of dollars.

To access the funding, a company has to have at least one completed financial year, in which the eligible spending has occurred. For the ATO to release the funding, a company has to finalise its accounts and file an R&D tax credit claim as part of its tax return.

What is an R&D tax credit loan?

The R&D Advance Funding option is a loan facility taken out against a company’s future R&D tax credit refund. The R&D financing option can be accessed up to half way through the fiscal year, is affordable and can be used even if you are pre-revenue. For more info on the R&D loan see our guide.

R&D tax loan

Is my company eligible?

Eligibility isn’t complicated but does take into consideration a number of circumstances relating to your company setup and operation, however generally if you fit the following criteria you should get in contact to discuss your options.

A Limited Liability Company
Incorporated in Australia
Performing R&D with an expected tax credit of over $70,000 per annum