Lab+Life Scientist Jun 2015

Page 26

Sukvinder Heyer, Partner - Indirect Tax, Grant Thornton Australia

Encouraging innovation

in Australia’s life sciences and biotechnology industries

For those in the business of innovating, ensuring sufficient funding is available has always been a concern.


support for R&D is very high within the life

Even though the understanding of taxation sciences and biotechnology sphere in Australia,

he Research & Development (R&D)

significant opportunities and complexities still exist.

Tax Incentive has been a long-established source

Therefore, companies can make major gains by

of funding and support for businesses in the

taking advantage of this support and streamlining

research, development and early developmental

the process they do this through.

commercialisation phases. The policy driver behind

it’s working: a number of companies have publicly

Tax opportunities for research, development and early-phase commercialisation

stated that they have set up in Australia because of

Be certain whether your activities and/

the support provided by the R&D Tax Incentive.

or expenditure are eligible for the R&D Tax

the R&D Tax Incentive is to encourage more companies to engage in R&D in Australia. And


The R&D Tax Incentive has two tiers:

26 | LAB+LIFE SCIENTIST - June 2015

• A 45% tax offset for businesses with an

There are specific mechanisms under the R&D

aggregate turnover of less than $20 million,

Tax Incentive to provide a company with certainty

which may be available as a cash rebate if

on the eligibility of its activities for the R&D

the business is in losses (benefit of 15c in the

Tax Incentive. An Advance Finding can provide


this certainty, provided the company makes the

• A 40% non-refundable tax offset for businesses

application before the end of the financial year.

with a turnover greater than $20 million

If the year-end has passed, companies may also

(benefit of 10c in the dollar).

request AusIndustry to undertake a review of the |