Sukvinder Heyer, Partner - Indirect Tax, Grant Thornton Australia
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
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