The Assistant Treasurer, the Hon David Bradbury MP and the Minister for Industry and Innovation, the Hon Greg Combet AM MP, have released for public consultation a paper on the design and implementation of research and development (R&D) quarterly credits.
In June 2011, the Government announced that it would introduce quarterly credits for small and medium sized companies entitled to the R&D refundable tax offset. Quarterly credits would be accessible for each quarter commencing on or after 1 January 2014.
R&D quarterly credits would be an opt-in element of the R&D Tax Incentive for companies with an annual aggregated turnover of less than $20 million. It would assist companies eligible for the R&D refundable tax offset to obtain the benefit of the offset on a quarterly basis during an income year, rather than waiting until an income tax return is assessed.
The purpose of this consultation paper is to provide interested parties with an opportunity to provide feedback on the proposed arrangements for R&D quarterly credits. This feedback is valuable in ensuring the effective implementation of this measure.