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Fellow Australian here (albeit currently living in Tokyo). The "We create tax refunds" part of your homepage says that a company can get a tax refund even if t
by robzyb 11y ago
Fellow Australian here (albeit currently living in Tokyo).
The "We create tax refunds" part of your homepage says that a company can get a tax refund even if there is no sales.
Does this mean that if I establish a company tomorrow, invest $100k of capital, and spent $100k of capital on R&D, then the ATO will give my company $45k?
- ps4fanboy 11y agoYes, you have to spend the money though so youll still be down 55K, it doesnt count to things like capital purchases.
- gordjw 11y agoDepends who owns the company you spend the $100k with. They'd need to pay 30% tax on their income, leaving a net outlay by the government of $15k (15%) overall.
- robzyb 11y agoTheir income would be less than the $100k. They would have incurred expenses when they provided the services. I paid $100k, the provider took the $100k and spent $60k. This means they declare $40k income. The company pays $12k tax. The Goverment gives $55k to my hypothetical company.
- Innercode 11y agoThe R&D Tax Incentive was designed to give a cash benefit for startups who have little tax to pay. So your example is correct for a pre revenue entity, assuming no outstanding tax liabilities. Its an entitlement scheme, so as long as your doing R&D, have a company and spending your money through the company, you will get the benefit of the scheme. It is one area that Australia has a significant advantage over the US for startups.