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Keeping Tax Under Control

Research And Development (R&D)

Companies may claim a number of tax concessions in relation to expenditure on R&D activities, including an accelerated tax deduction (generally 125%) of R&D expenditure and accelerated depreciation on R&D plant and buildings.

In order to claim a deduction for R&D expenditure, the company and its R&D activities must be registered with the Industry Research and Development Board (IR&D Board), through AusIndustry.

R&D expenditure subject to the concession includes wages, salaries other labour costs and expenditure incurred directly on R&D activities.

From a compliance perspective, it is necessary to have systems to track the time and costs of personnel involved in R&D activities and software that computes the amount of the R&D concession based on this information.