Federal Budget 2021-22: The Australian R&D Tax Incentive
Tax Law - 12 May 2021
As expected, there have been no major announcements in relation to the Australian Research and Development Tax Incentive following the legislative changes announced in the October 2020 Budget, which will commence and apply from 1 July 2021.
Additionally, there was no mention of introducing a software-specific R&D Tax Incentive or quarterly refund payments under the current R&D Tax Incentive program, despite the recent recommendations report handed down by the Senate Select Committee.
New changes for the self-assessment and effective life calculations for intangible depreciating assets will not have an impact on R&D Tax Incentive claims as the current legislation allows for the upfront R&D deduction for the full costs of intangible depreciating assets.
The extension of the Temporary Full expensing rules to 30 June 2023, will benefit businesses investing in capital equipment/expenditure to carry out eligible R&D activities in Australia as the full cost of tangible depreciating assets will still be eligible for the R&D notional deduction for an additional 12 months.
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