The Federal Government has released a public consultation paper to enable small and medium sized companies and other stakeholders to contribute to the design of the R&D Tax Incentive quarterly credits initiative.

 

The new R&D quarterly credits initiative will provide more timely access to tax incentives for small and medium sized businesses undertaking eligible research and development.

 

R&D quarterly credits will be an opt-in element of the Government's R&D Tax Incentive, which will further improve company cash flow and enhance incentives to invest in R&D activities.

 

Quarterly credits will be available to small and medium sized companies eligible for the R&D refundable tax offset.

 

Rather than waiting until an income tax return is assessed by the ATO, companies can choose to obtain the benefit of the offset on a quarterly basis during an income year.

 

Providing benefits to smaller companies sooner will be a better way to help them invest in their own future success, and in doing so, the Government is also investing in Australia's long-term economic future.

 

The R&D Tax Incentive is part of the Government's ambitious innovation agenda to create more business opportunities, growth and jobs for the future. It will help make our businesses more innovative and, across the nation, will assist to increase Australia's productivity and competitiveness.

 

Quarterly credits will be accessible for each quarter commencing on or after 1 January 2014.

 

The Government encourages comment and feedback on the paper as part of the consultation process to help ensure that the design of quarterly credits works for business.

 

The consultation paper can be found at www.treasury.gov.au. Consultation on the paper will close on 31 August 2012.